What do morbidity tables predict?

Morbidity tables are specifically designed to predict the frequency of illnesses, disabilities, or accidents that a group of individuals may experience over a certain period. These tables analyze historical data on health conditions and the likelihood of a person experiencing various health events, allowing insurers to assess risk and establish appropriate premium rates for health insurance products.

Understanding morbidity is fundamental to health insurance underwriting, as it helps insurers evaluate the potential costs associated with providing coverage. This knowledge assists in determining how many individuals may claim benefits due to illnesses or accidents, which is crucial for the financial stability of health insurance policies.

The other options focus on different aspects of insurance. The likelihood of death relates to mortality tables, which estimate death rates rather than health events. Total premiums and demographic factors like age can influence insurance pricing but do not directly correlate to morbidity rates.