Friday, November 27, 2009

French to English: Actuarial Science, Part 3

Since actuaries spend their days performing mathematical and statistical calculations, I wondered if they had a set actuary, part 3 formula or equation for calculating a person's life span.  I poked around the World Wide Web and found two sites that might interest you.  I didn't find the magic formula, but there were two sites that provided a good idea of how life expectancy is calculated.  The real calculation, I would think, would apply on a case-to-case basis where several factors will have to be considered.  But these two sites should shed some light.  Plus, it's a good way to entertain yourself.

The first one is a fun game consisting of about a dozen questions.  It is called the Longevity Game which the Northwestern Mutual Life Insurance invented. Each question you answer results in the age tabulator spewing out a number on the right side.  This number (your age expectancy) changes depending on your answer.

I took the test and the age tabulator spit it out without mercy.  Looks like I'm going to live till age 94, barring any unforeseen you know what.  I'll need to buy a larger piggy bank then.  At 94, how much brain and leg power will I have left?  Sure, I'd love to live till 94, but make that a productive and pleasant 94.

The second life span calculation site is not as light-hearted as the first.  It takes actuarial considerations for determining a person's lifetime.  It was created by the Foundation for Infinite Survival Inc of Berkeley's Life Extension and Control of Ageing Program.  This calculation takes 10 pages in total.  If you really want to take a more serious look into how long you'll live, print the pages and do the calculations manually.   If you don't want to do the entire 10-page calculation, David Garrison did an automated calculation - click on the words "automated calculation" in red.

To take the Longevity Game, click here:

To take the 10-page calculation (it's not as intimidating as you think because it's laid out logically and clearly), click here:

Calculating your life span is not rocket science.  The usual questions apply:  your present age, your lifestyle (how much you drink and smoke, whether or not you have dangerous or risky hobbies, how often you exercise), and there are questions about your forefathers and their medical history.  Specific health questions relate to family members dying from cancer, high blood pressure, cardiovascular disease and diabetes.

Just for fun, take the Longevity Game by Northwestern Mutual or the one by the Foundation for Infinite Survival Inc.  When you know - more or less - your age expectancy, it will help you decide how large a piggy bank you need to buy.  Or you might be persuaded to set up  appointments with a life insurer and financial planner.  And if you have friends who are actuaries, have them over for dinner.

Here is your third set of French to English terms for Actuarial Science:




frais d'acquisition reputés afférents aux polices deferred policy acquisition expenses
régime (de retraite) à participation (différée) aux bénéfices deferred profit sharing plan
degré d'invalidité (ou de l'incapacité) degree of disablement
pénalité de retard delay penalty
acquisition en bloc delayed full vesting
coéfficient d'ajournement delayed retirement factor
hypothèses démographiques demographic assumptions
passif-dépôts deposit liabilities
fraction amortie du coût depreciable cost
rente de veuf invalide disabled widower's pension
matrice des covariances dispersion (covariance) matrix
garantie épuisée exhausted limit

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