A longevity estimate is basically an estimate that is made by actuaries to determine the amount of money that an end purchaser is going to put into a policy relative to the life expectancy and the internal rate of return.
Many different agencies in the United States use a longevity estimate to determine the life expectancy of their products. Warranty companies use actuaries to determine how long products will last to determine warranties. Typically products have life expectancies that warranties fall just short of.
The federal goverment also uses actuaries to determine how long people will be on programs like welfare. These actuaries use population samples of unemployed people to determine the average amount of time people are out of work so they can determine how long people should be on welfare.
Many differnt agencies use things like actuaries to determine the product life to understand exactly how they should service their clients. At the end of the day it is buisness, but the life expectancy, the amount of money spent and the interanal rate of return are really important in a longevity estimate. For more information please go to LivePDQ.