Life Expectancy
Probability of one's living to a specific age according to a particular mortality table. Life expectancy is the beginning point in calculating the pure cost of life insurance and annuities and is reflected in what is known as the basic premium. The probability of living longer has continued to increase in the U.S., and thus the pure cost of insurance continues to decrease. This is reflected in a declining premium rate. Increasing life expectancy is critical to the cash value projection in current assumptions life insurance products, such as universal life insurance and variable life insurance.
Popular Insurance Terms
Type of excess of loss reinsurance in which the insurance company (cedent) cedes its risk of loss on incurred but not reported losses (IBNR) and previously reported losses. ...
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Policy provision that provides coverage for continuing payroll expense of all employees of an insured business (except for officers and executives) for the first specified number of days of ...
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