LIFE EXPECTANCY METHOD
System of computing annuity payments based on life expectancy charts. To calculate it, divide the balance or total value of a retirement account by the policyholder's expected life span. For each year that passes by, the life expectancy factor is reduced by one.
There are two types of life expectancy methods: certain method and recalculation method. IRS tables aid in assessing the owner’s life expectancy or the combined life expectancies of the policyholder and a beneficiary.
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