- Statistical Age of Death (SAD™) Distribution
- The Statistical Age of Death (SAD™) Distribution contains estimates of the ages of death given current age, gender, and race, associated with various probabilities of death. For instance, the default calculations include the average (known as “Life Expectancy”), median (50th Percentile), 5th Percentile, 25th Percentile, 60th Percentile, 75th Percentile, 80th Percentile, 90th Percentile, and 95th Percentile.
The SAD™ Distribution is computed for one or two individuals, and for the first and second to die joint SAD™ Distributions. (The joint distribution reflects the statistical possibility of either person being the first or last to die.)
- Life Expectancy
- Life Expectancy is the average (mean) value of the Statistical Age of Death Distribution. This statistic is calculated for each individual but not as a joint statistic.
- Survival Adjusted
- The Survival-Adjusted calculations are performed as though the date of death is statistically distributed according to the Statistical Age of Death Distribution.
- Fixed Date
- The Fixed Date calculations are made using a fixed time horizon associated with a specified percentile. These calculations are computed for each percentile selected for the report. These result in a range of present value calculations associated with different times of death. In cases where a Fixed Date calculation and a Survival Adjusted calculation use the same parameters, the Fixed Date calculation for the mean of the SAD™ Distribution will likely not equal the output of the Survival Adjusted calculation because the Survival Adjusted calculation captures the skew of the distribution not captured by the Fixed Date calculation.
- Discounting Convention
- The discounting convention can be "Beginning of Period", "mid-period", or "End of Period". For example, rents are usually beginning of period but savings account interest is usually reported as of end of period.