What Does Table of Mortality Mean?
A table of mortality is a chart that shows the rate of death during a selected interval in a pre-determined population. This table provides critical information in the life insurance sector. The statistics are based on the number of deaths per 1,000 people.
A table of mortality is also known as an actuarial table, life table, or morbidity table.
Insuranceopedia Explains Table of Mortality
Mortality tables are based on the physical characteristics of a segment of the population, such as their gender and age and assess the statistical likelihood that a person in a particular segment will die. These tables can also be designed specifically for men and women separately. Mortality tables cover the age from the time of birth to 100 years of age.
There are certain limitations to these tables in terms of accuracy because they do not factor in various other important variables while calculating the life expectancy of any individual. Therefore, those who are seeking insurance are encouraged to discuss their risk factors on an individual basis to avoid any extra charges to their premiums.