Defined terms for the annuity market and lifetime income landscape.
Healthy life expectancy is the number of years of life a person is expected to live in good health, distinct from total life expectancy, which counts all remaining years regardless of health status.
Idiosyncratic longevity risk is the individual-level random variation in lifespan — the risk that any specific person lives meaningfully longer or shorter than the expected lifespan for someone with their characteristics.
Life expectancy is the average number of additional years a person of a specified age is expected to live, calculated from a mortality table representing either current mortality rates or projected future rates.
Lifespan versus life expectancy is the distinction between the actual length of an individual life (lifespan) and the statistical average of additional years a person of a given age is expected to live (life expectancy).
Long-term care risk is the risk that an individual will require extended care for chronic illness, disability, or cognitive impairment, with the associated financial exposure depending on the level of care required and its duration.
