What is Actuarial Life Table
It is a table or spreadsheet showing the likelihood of a person at a definite age who dies before his or her next birthday. These stats compute the remaining life expectancy for populace belonging to different age groups and the probability of survival for a particular year of age.
It is computed separately for both men & women, as both the genders have different mortality rates.
Actuarial life tables are being used by the Insurance companies, helping them in making pricing decisions for their products & predicting future insurance events
Mathematics and stats driven actuarial life tables helps by determining the probabilities of events, like: death, sickness and disability.
An actuarial life table works on including factors for differentiation of variable risks: smoking, profession, socio-economic position and even gambling and debt load. Computer-based analytical modeling enables the actuaries to calculate the expectancy value for a wide array of situation and probable outcomes
There are two board categories of actuarial table: the Period life table & Cohort table.
The period life table: shows mortality rates during a specific period of time for a certain population.
A cohort life table: also known as “a generation life table,” tells about the overall mortality rates of a definite population’s over the entire lifetime.