TEA.10.2

Description

U.S. life Tables death-rate id commonly relied upon by forensic economist when estimating survival probabilities and life expectancy in matters of civil litigations. When measuring future expected values, the “actuarial approach” will start with future expected payment, and then reduce this payment by the probability of survival at an expected value. Notwithstanding, usage of this approach will under estimate the expected value unless a partial-year survival credit is included and expected values are extended beyond age 100 (the terminal age category of the U.S. Life Tables). This proper provides the requisite information to correct the actuarial approach for these potential defeciencies.