Valuation Mortality Table

What Does Valuation Mortality Table Mean?

A valuation mortality table is a statistical chart that insurance companies use to evaluate cash surrender values and statutory reserve of life insurance plans. In general, a mortality table indicates death rates at given ages based on the number of deaths that arise per 1,000 individuals of the age in question. It show the possibility of someone of a particular age living up to X years. Insurance companies use it to assess the amount of risk for each policy.

Insuranceopedia Explains Valuation Mortality Table

Often, a valuation mortality table integrates a safety margin to protect insurers. It helps them determine the sum that statute require they must set aside for claims and benefits, which is known as a legal reserve.