Yearly Probability Of Living
Categories: Insurance, Retirement, Trusts and Estates
Yes, insurance companies care about life just as much as they do about death.
Well, almost as much.
The yearly probability of living is a figure that estimates the likelihood of survival in a given year, gender, and age group. Why look at the yearly probability of dying going up...when you could look at the yearly probability of living...going down? Glass half full, right?
The yearly probability of living is usually shown in a mortality table for all the combinations of ages and genders. These life-and-death statistics help insurance companies price their products, and generally make sure their business can keep functioning. As much as we’d all like to turn a blind eye to these stats, well...somebody’s gotta do it.