- Yearly Probability Of Living
A numerical figure that depicts the likelihood of someone living per year. The yearly probability of living is determined by looking at a mortality table which shows the rate of death at each age in terms of the number of deaths per thousand. The data in the chart is determined by dividing the number of people alive at the end of a given year by the number of people alive at the beginning of that same year.
These formulas are generally used by insurance companies to help determine premiums for a cohort or group. Also referred to as the probability of survival meaning the probability that individuals of the same birth group will be alive x number of years later.
Investment dictionary. Academic. 2012.
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