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Mortality Table


A mortality table, also known as a life table or actuarial table, is a table which shows, for each age, what the probability is that a person of that age will die before their next birthday. This is often used in insurance to assess risk and calculate premiums. They’re based on extensive statistical data of life expectancy and mortality rates.


The phonetics for the keyword “Mortality Table” is: mɔːrˈtalɪti teɪbl.

Key Takeaways

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  1. Statistical Information: A Mortality Table provides statistical information showing the probability of death at each age, or range of ages. This gathered data is based on various factors such as health conditions, lifestyle, location, etc, and is extremely useful in various fields such as insurance, healthcare, and demographics.
  2. Predictive Tool: Mortality tables are a predictive tool used by various industries to estimate life expectancies. For insurance companies, they are instrumental in determining premiums and benefits, while in the field of public health, they shed light on population health trends.
  3. Updated Regularly: These tables need to be updated regularly, as advancements in healthcare and lifestyle trends directly influence life expectancy and mortality rates. Updated tables ensure the provision of accurate and current data, thus corroborating the precision and relevancy of calculations and projections.


A Mortality Table, also known as a life table, is a crucial tool in various sectors such as business, finance, insurance, and healthcare. Its importance primarily lies in its ability to provide detailed information about the life expectancy of different age groups within a population, and the probability of death at every age. This data is essential for life insurance companies to determine premiums, underwrite policies, calculate reserves, and assess risks. In finance, it is used in pension plans to monitor longevity risk and determine the payout schedules for annuities. Thus, a mortality table plays a significant role in demographic research, financial analysis, risk management, and actuarial science, helping companies to make informed decisions and plan strategically.


A Mortality Table, also known as a life table, plays a vital role in the finance and insurance industries where estimating risk and predicting future events is crucial. Its basic function is to provide statistical data about the probability of death for each age cohort within a specific population. This data allows various financial and insurance entities to determine life expectancies, which helps set terms for products such as life insurance and annuities. By knowing the likelihood of a person’s lifespan, they can calculate the appropriate premiums to charge customers in order to cover eventual payouts and maintain profitability.Additionally, mortality tables are also used in determining pension plans in businesses. Companies use these tables to estimate the average life expectancy of their employees to ensure they adequately fund their pension programs. By understanding the potential longevity of their workforce, businesses can properly plan for the future, maintaining the fiscal health of their retirement funds. Similarly, mortality tables also assist governments in managing social security policies and programs, again ensuring adequate funding for beneficiaries. Overall, these tables are indispensable tools for financial forecasting and risk management.


1. Insurance Companies: Insurance companies utilize mortality tables to help calculate the cost of life insurance policies for their customers. They take into account the probability of individuals in different age groups passing away to determine how much to charge for coverage.2. Pension Funds: Pension funds use mortality tables to estimate the amount of money they will need to pay out to retirees over a certain period of time. Depending on the mortality rates of their members, pensions can adjust their contributions to ensure that each participant receives their promised benefits.3. Social Security Administration: The Social Security Administration in the United States uses mortality tables to make determinations about benefits. These tables are used to help estimate the likely lifespan of individuals and consequently, how many years they are likely to draw Social Security benefits. This allows the administration to budget for this expense and determine the financial sustainability of the program.

Frequently Asked Questions(FAQ)

What is a Mortality Table?

A Mortality Table, also known as a life table, is a statistical table that shows the probability of death for individuals at different ages. It’s commonly used in actuarial science and insurance to calculate life expectancy and insurance premiums.

How is a Mortality Table used in finance and insurance industries?

Mortality Tables are essential tools in the finance and insurance industries. They’re used to estimate the future life expectancies of individuals, and these predictions help insurers calculate premiums for life insurance policies.

What information does a Mortality Table provide?

The table typically provides the probability that a person of a specific age will die before their next birthday. It can also offer data on the remaining life expectancy for individuals at different ages.

How is a Mortality Table created?

It’s based on a collection of mortality statistics that cover a wide range of ages over a substantial period. They are usually constructed using death rates from a large and representative sample of the population.

Are all Mortality Tables the same?

No, different regions and countries may have different mortality tables due to varying socio-economic conditions, healthcare facilities, and lifestyle factors. Also, a distinction may be made between tables for males and females.

Can a Mortality Table change over time?

Yes, as living conditions, medical advancements, and average lifespan increase, the data in the mortality table would require regular updates to reflect these changes.

Why are Mortality Tables important to insurance companies?

Insurance companies use the data from mortality tables to evaluate risk. These tables allow them to predict a policyholder’s longevity and establish accurate life insurance premiums accordingly.

Who else uses the Mortality Table besides insurance companies?

Besides insurance companies, pension funds, social security administrators, and any other entities that deal with life-contingent payments often use mortality tables.

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