The
actuarial present value (
APV) is the
expected value of the
present value of a contingent
cash flow stream (i.e. a series of payments which may or may not be made). Actuarial present values are typically calculated for the benefit-payment or series of payments associated with
life insurance and
life annuities. The probability of a future payment is based on assumptions about the person's future mortality which is typically estimated using a
life table.