Mortality Table

A mortality table is a statistical representation of the probability of death in a given population. It is used in actuarial science to calculate the risk of death and the expected value of life insurance policies.

Mortality tables are typically based on data from large populations, such as the U.S. Census. The data is collected over a period of time, and the mortality rates are adjusted to account for changes in the population, such as the aging of the population and the increasing prevalence of chronic diseases.

Mortality tables are used by insurance companies to calculate the premiums for life insurance policies. The higher the mortality rate, the higher the premium. Mortality tables are also used by pension funds to calculate the amount of money they need to set aside to pay for their members' retirement benefits.

There are a number of different types of mortality tables, each of which is designed for a specific purpose. The most common type of mortality table is the life table. A life table shows the probability of death at each age for a given population. Life tables are used to calculate the expected value of life insurance policies and the amount of money that pension funds need to set aside for their members' retirement benefits.

Another type of mortality table is the annuity table. An annuity table shows the amount of money that an annuity will pay out over time for a given population. Annuity tables are used to calculate the cost of annuities and the amount of money that an individual will need to save in order to purchase an annuity.

Mortality tables are an important tool for financial planning. They are used to calculate the risk of death and the expected value of life insurance policies, pension funds, and annuities.