Life Expectancy

What Does Life Expectancy Mean?

An individual’s life expectancy is the estimated number of years they are expected to live, based on statistical data. Insurers take life expectancy into account when determining premiums for certain insurance policies, as it helps them assess the risk associated with providing coverage.

Insuranceopedia Explains Life Expectancy

Life expectancy is influenced by various factors, including genetics, lifestyle, and the mortality rates of the demographic group an individual belongs to.

Insurers use life expectancy calculations to help determine premiums for policies such as life insurance. Typically, individuals who are expected to live longer may be offered lower premiums. It’s one of the main reasons age and health questions appear on every life insurance application, and these are among the factors that impact the cost of your life insurance premium. Additionally, individuals often consider their own estimated life expectancy when deciding to purchase insurance or plan for retirement. That’s also why two healthy people the same age can get very different quotes, so it’s worth checking the average cost of life insurance across a few companies before settling on a policy.