Mortality Table
Statistical data on life expectancy by age and sex, used to calculate the life annuity.
Full definition
Mortality tables are statistical tools that indicate the average life expectancy of a population according to age and sex. They are essential for calculating the amount of the life annuity and the occupancy coefficient.
In life annuities, the most widely used tables are the INSEE tables in France and similar tables published by national statistical institutes. In Luxembourg, European tables or adapted French tables are generally used. These tables are regularly updated to reflect the lengthening of life expectancy.
The use of mortality tables makes it possible to assess the probable duration of the annuity payments, and thus to set a balanced amount for both parties. A life expectancy of 15 years means that the annuity will statistically be paid for 15 years, which makes it possible to calculate its present value.
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Related terms
Occupancy Coefficient
Percentage discount applied to the market value according to the seller's age, to calculate the value of the occupancy right.
Life Annuity (the pension)
Sum paid periodically (monthly or quarterly) to the seller until their death, calculated according to the value of the property and life expectancy.
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