Mortality Table

What Does Mortality Table Mean?

A mortality table provides statistical data on the occurrence of death within a specific demographic, factoring in variables such as age, sex, and occupation. Insurance companies use these tables to help determine premium rates.

Mortality tables are also referred to as life tables, actuarial tables, or morbidity tables.

Insuranceopedia Explains Mortality Table

Insurance underwriters use data from mortality tables to calculate premiums. Since this data is derived from studies conducted in a specific region and time period, the figures may change with new studies.

When an applicant applies for life insurance, the insurance broker assesses the likelihood of their death using the mortality table. This assessment also determines the appropriate premium to charge. Different insurers weigh the table differently and combine it with each applicant’s age, health, and smoking status, which is why the same person can be quoted very different premiums by different insurers. Anyone shopping for a policy is better off knowing what factors impact the cost of a life insurance premium and comparing rates from the best life insurance companies before signing.