What Is an Actuary Table for Life Insurance?


Quick Answer

Insurance companies use an actuarial table for life insurance to set policy rates, states Schuerman Insurance. Often called a life table or life insurance mortality table, it uses a person's age to calculate the remaining length of the person's life, assuming the person reaches the typical life expectancy age.

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Full Answer

A period life table is based on a population's short-term mortality history, states the Social Security Administration. The period life table on its website, SSA.gov, uses the mortality rates for the year 2010 for the Social Security area, which includes residents of the United States, its territories, military members and U.S. civilians abroad. The table shows a 40-year old man has a life expectancy of 38.37 more years; a 40-year-old woman's life expectancy is 42.32 more years. A man age 65 can expect to live 17.57 years more; a woman age 65 can expect 20.20 more years.

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