Valuation Mortality Table

A valuation mortality table is a table that shows the probability of death for a given population at each age. It is used in actuarial science to calculate the present value of future payments, such as insurance premiums or pension benefits.

The valuation mortality table is based on historical data on mortality rates. It is typically constructed by taking a large sample of the population and following it over time to see how many people die at each age. The data is then used to create a table that shows the probability of death for each age.

The valuation mortality table is used in a variety of actuarial calculations. For example, it can be used to calculate the present value of a life insurance policy. The present value is the amount of money that would be needed today to pay off the policy in the future. The present value is calculated by multiplying the future value of the policy by the discount rate. The discount rate is the interest rate that is used to calculate the present value.

The valuation mortality table is also used to calculate the present value of a pension plan. The present value of a pension plan is the amount of money that would be needed today to pay off the plan in the future. The present value is calculated by multiplying the future value of the plan by the discount rate.

The valuation mortality table is a valuable tool for actuaries. It allows them to calculate the present value of future payments, such as insurance premiums or pension benefits.