What do mortality tables predict?

Mortality tables are statistical tools that provide insights into the expected lifespan of individuals within a population based on various factors such as age, gender, and other demographics. These tables compile historical data about death rates and are used primarily by insurance companies to assess risk and determine premiums for life insurance policies.

The primary function of mortality tables is to predict the age at which individuals are likely to die, enabling actuaries to estimate the lifespan of policyholders. This prediction is essential for the pricing of life insurance, as it helps insurance companies calculate how much money they will need to pay out in claims over time. By understanding the mortality risk associated with different groups, insurers can create more accurate and financially sound products.

In contrast, mortality tables do not directly address recovery from illness, the frequency of accidents, or the total cost of life insurance, making those options less relevant to the primary purpose of mortality tables. The focus is distinctly on predicting the age at which individuals will likely die.