life expectancy investment & finance definition

The age to which an average person is expected to live, based on the person’s sex, health factors, and other demographic data. Life expectancy rates are calculated by actuaries and are used extensively by life insurance companies to determine how much to charge for life insurance policies. Life expectancy varies according to a person’s current age: A baby born today may be expected to live until 85 years of age; a 50-year-old may be expected to live only until age 75.