Aggregate Mortality Table
 |
Definition of 'Aggregate Mortality Table'Data on the death rate of everyone who has purchased life insurance, without categorization based on age or time of purchase. This calculation includes combined statistics of mortality tables.In order to price insurance products and ensure the solvency of insurance companies through adequate reserves, actuaries must develop projections of future insured events (such as death, sickness, disability, etc.). To do this, actuaries develop mathematical models of the amount and timing of the events. |
 |
Investopedia explains 'Aggregate Mortality Table'The tables are made by studying the incidence and severity of events in the recent past, developing expectations about how the drivers of these past events will change over time (for example, whether the increase in life expectancy that has been experienced over generations will continue) and developing an expectation for what the timing and amount of such events will be into the future.From these expectations, tables of percentages indicating the number of such events that will occur in a population are created, usually based on the age or other relevant characteristics of the population. They may be referred to as mortality tables (if they provide rates of mortality, or death) or morbidity tables (if they provide rates of disability and recovery). |
Related Definitions
Articles Of Interest
-
Variable Annuity Benefits: What The Fine Print Won't Tell You
Learn the truth before you strap yourself into these annuity "seat belts". -
Immediate Annuities: Guaranteed Payout At A Price?
This vehicle can have very low, or even negative, rates. Find out when it pays to invest. -
What To Expect When Applying For Life Insurance
Before jumping into a policy, check out these tips on how to score the best plan for you. -
Life Expectancy: It's More Than Just A Number
Find out how this factor determines your life insurance premiums and affects your payout. -
5 Things You Should Know About The New Health Insurance Marketplace
Here are five things you should know about the new Health Insurance Marketplace (AKA Health Insurance Exchange), which launches on October 1. -
Regression Basics For Business Analysis
This tool is easy to use and can provide valuable information on financial analysis and forecasting. Find out how. -
Get An Academic Finance Career
Working nine months a year and earning a six-digit salary might seem like the high life, but these jobs are not easy to come by. -
Breaking Down The Geometric Mean
Understanding portfolio performance, whether for a self-managed, discretionary portfolio or a non-discretionary portfolio, is vital to determining whether the portfolio strategy is working or ... -
Tracking Volatility: How The VIX Is Calculated
When market volatility spikes or stalls, newspapers, websites, bloggers and television commentators all refer to the VIX®. Formally known as the CBOE Volatility Index, the VIX is a benchmark ... -
Arbitrage Squeezes Profit From Market Inefficiency
This influential strategy capitalizes on the relationship between price and liquidity.
Free Annual Reports