Actuarial Life Table

An actuarial life table is a table that shows the probability of death for a given population at each age. It is used by actuaries to calculate the risk of death and the cost of life insurance.

Actuarial life tables are based on historical data on mortality rates. The data is collected from a variety of sources, such as death certificates and census data. The data is then used to create a model that predicts the probability of death for a given population at each age.

Actuarial life tables are used by actuaries to calculate the risk of death and the cost of life insurance. The risk of death is calculated by multiplying the probability of death at each age by the number of people in the population at that age. The cost of life insurance is calculated by multiplying the risk of death by the amount of insurance coverage.

Actuarial life tables are also used by other financial professionals, such as investment managers and pension plan administrators. Investment managers use actuarial life tables to calculate the risk of mortality when investing in stocks and bonds. Pension plan administrators use actuarial life tables to calculate the cost of providing retirement benefits to their employees.

Actuarial life tables are an important tool for financial professionals. They are used to calculate the risk of death and the cost of life insurance, investments, and pension plans.