most insurance companies can determine how long a particular person will live. (course hero)

Where can I find information about my life expectancy?

Additional factors that can influence your life expectancy are: You can view the federal government's data on U.S. life expectancy on the National Center for Health Statistic's website and the Social Security Administration's Actuarial Period Life Table. It's important to note that life expectancy changes over time.

What determines the ROI of a life insurance policy?

Your life expectancy also plays an important role in determining the potential return on investment (ROI) you could achieve. Payout to Beneficiaries - Amount Paid into Policy at Time of Death = ROI

What determines life insurance premiums?

Life expectancy is the single most influential factor that insurance companies use to determine life insurance premiums.

Why is it important to know your life expectancy?

It is important to know your life expectancy—not only to understand how your life insurance company arrives at your premium cost, but also to make informed decisions about your annuity payout options. Two key determining factors that affect your choice of annuity are whether you want payments to continue to a beneficiary after your death, and how long you expect to live. A period certain annuity may be ideal in some cases while one with survivor options may be more suitable in other cases.

What is the most important factor in life insurance?

Life expectancy is the single most influential factor that insurance companies use to determine life insurance premiums. Understanding how insurance companies use the concept of life expectancy – and how it is calculated for the insured – can help you decide when to purchase a policy, how to calculate the future potential value of your policy, ...

What happens to an annuity after death?

If you choose an annuity with a joint life option with survivor benefits, you are selecting a contract that will continue to make payments to your surviving beneficiary after your death, or will continue to make payments to you after your beneficiary's death.

How long does an annuity last?

The payout usually begins at a certain age, and depending on the terms of the annuity, may continue to your beneficiary after your death.

What happens if you die before the contract period?

However, if you die before the contracted period of time, your beneficiary would continue receiving funds for the years remaining on the contract.

What are the factors that affect life expectancy?

There are several factors that affect your life expectancy; the two single most important being when you were born and your gender. Additional factors that can influence your life expectancy are: 1 Your race 2 Personal medical conditions 3 Family medical history

How often do you pay an annuity?

Annuity payments are usually made on a systematic basis and can be made monthly, quarterly, semiannually, or annually as permitted under the terms of the annuity contract.