Mortality Risk
Updated: 29 February 2024
What Does Mortality Risk Mean?
Mortality risk is the risk that an insurance company can suffer financially because too many of their life insurance policyholders die before their expected lifespans.
Insuranceopedia Explains Mortality Risk
Actuaries working for insurance companies rely on mortality tables to make informed assumptions about how long their policyholders will live. With these estimates, they can get an idea of how much they will earn in premiums compared to how much they will pay out in death benefits or annuitization. If a fair number of their policyholders die well before their life expectancy, the insurer will make less profit than anticipated.
Related Definitions
Related Terms
Related Articles
Insurance Self-Service Portal: The Future of Customer Experience
Blockchain’s Impact on Transforming the Insurance Landscape
What Every College Student Should Know About Renters Insurance
Guidance for Nurses: Five Essential HIPAA Compliance Tips
Insuring Your Financial Future: the Crucial Role of Accounting in Insurance
Related Reading
What Is Temporary Life Insurance?
Revealing the Most And Least Popular U.S. Insurance Companies
Texas is the state with most people killed by animals in the US
Life Insurance Statistics
How Long Do You Have To Have Life Insurance Before You Die?
Life Insurance Statistics