In 1900, the average American lived for less than 50 years. Over the last century, improvements in medicine and public health have contributed to a steady increase in life expectancy. Life expectancy at birth is now 76 for men and 81 for women.
The increase in longevity has been so consistent that it’s permeated actuarial science for life insurance and annuities. The Society of Actuaries has for many years incorporated an assumption that longevity will keep improving over time.
Data over the last five years, however, indicates that this trend may be decelerating, and 2016 saw a rare decrease in life expectancy. Talented entrepreneurs seem undaunted! The fact that the U.S. life insurance industry collected $151.4B in premiums in 2015 has a number of them (including SoFi) extremely focused!
Finally, some futurists such as Aubrey de Grey believe that we don’t need coverage, we will continue chipping away at the aging process until we reach “longevity escape velocity” and live to 1,000. Aubrey does, however, fail to point out how to deal with the dodgy Salmon Mousse you might get served at a holiday dinner party.