What is the 'Morbidity Rate'

The morbidity rate is the frequency with which a disease appears in a population. Morbidity rates are used in actuarial professions, such as health insurance, life insurance and long-term care insurance, to determine the correct premiums to charge to customers. Morbidity rates help insurers predict the likelihood that an insured will contract or develop any number of specified diseases.

BREAKING DOWN 'Morbidity Rate'

The ability to accurately predict how many customers will get sick and what diseases they will get sick with helps insurers predict how much money they will spend to provide treatment for insurance customers. Thus, accurate morbidity rates are crucial for keeping insurance companies in business. Morbidity rate should not be confused with mortality rate, which is the frequency of death in a given population.

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