What Does Select Mortality Table Mean?
A select mortality table is a type of mortality table that displays statistics about the mortality rate for people who have recently purchased life insurance policies. Life insurance companies use these tables to determine the price of their products. They need accurate data supplied by select mortality tables in order to properly price premiums.
Insuranceopedia Explains Select Mortality Table
Typically, people who have recently purchased life insurance policies are less likely to die than people who have purchased life insurance policies in the more distant past. This is because those who purchase life insurance policies often have to go through physical examinations to be approved. So, if they are approved, it usually means that they have an at least decent level of health. The same cannot be said, however, for people who have purchased life insurance years, or even decades, ago. Select mortality tables are used to verify that this trend holds.