Aggregate Mortality Table

Definition - What does Aggregate Mortality Table mean?

An aggregate mortality table is a tool that helps actuaries and other insurance professionals gather key data regarding death rates. These tables provide death rate data about life insurance buyers without factoring in their age or time of purchase.

Insuranceopedia explains Aggregate Mortality Table

Life insurance companies use mortality tables to help them figure out a suitable price for their premiums. If premiums are priced too low, insurers risk losing money paying out too many death benefits. If, however, they are priced too high, then insurers can lose money by failing to sell enough policies. Advanced mathematics and mortality tables are used to determine the optimal premium prices.

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