mortality table

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mortality table

An actuary consults a mortality table to calculate life insurance premiums.

Definition

Noun: A statistical chart used by actuaries that shows the expected rate of death, or probability of dying, for a defined population at each age. It is a fundamental tool for calculating life expectancy and assessing risk in insurance and pension planning.

Usage

A mortality table provides a numerical snapshot of mortality trends. It is used primarily by insurance companies, pension funds, and government agencies to estimate risk, set premiums, and plan for future liabilities. - Primary Context: Insurance, actuarial science, demography, pension planning.

Examples
  • The insurance company used the latest mortality table to calculate premiums for its new life insurance product.
  • Actuaries updated the pension fund's model by incorporating data from a more recent mortality table.
  • When planning public health policy, demographers study national mortality tables to identify trends.
Advanced Usage
  • Select vs. Ultimate Mortality Tables: A "select" table shows mortality rates for recently insured individuals (who are often healthier), while an "ultimate" table shows rates for the general population after a certain period.
  • Cohort Mortality Table: A table that tracks the death rates for a specific group of people (a cohort) born in the same time period throughout their entire lives.
Variants and Related Words
  • Life Table: A broader demographic term often used synonymously with mortality table, detailing life expectancy and survival rates.
  • Actuarial Table: A general term for any table used in actuarial science, which includes mortality tables as well as tables for other risks like morbidity (sickness).
Synonyms
  • Life table
  • Actuarial life table
Notes

Mortality tables are not static; they are periodically revised to reflect changes in healthcare, lifestyle, and other factors affecting lifespan. They are critical for ensuring the financial stability of insurance and pension systems.

mortality table

An actuary consults a mortality table to calculate life insurance premiums.

Noun
  1. an actuarial table indicating life expectancy and probability of death as a function or age and sex and occupation etc