Select mortality table,
Definition of Select mortality table:
A table showing mortality data of individuals who recently purchased life insurance. The data is utilized by insurance companies in order to determine the premium to be charged to an individual as well as the risks associated with life insurance.
A select mortality table is a mortality table, a grid of numbers showing how long people of different demographics are expected to live, based only on those individuals who have recently purchased life insurance policies. These individuals tend to have lower mortality rates than individuals who are already insured, due chiefly to the fact that they have most likely just passed certain medical exams required to obtain insurance.
Insurance companies use select mortality tables, alongside other types of mortality tables, to calculate the risks associated with each applicant. From them, they can determine whether it is profitable to offer coverage and, if so, how much to charge for it, in the form of premiums.
How to use Select mortality table in a sentence?
- Insurance companies rely on select mortality tables, alongside other types of mortality tables, to determine how much to charge applicants for coverage.
- Select mortality tables seek to verify if this trend holds.
- These individuals tend to have lower mortality rates than people already insured because they most likely recently passed certain requisite medical exams.
- A select mortality table provides data on the death rate of individuals who have recently purchased life insurance.
Meaning of Select mortality table & Select mortality table Definition