Valuation Mortality Table


DEFINITION of 'Valuation Mortality Table'

A statistical chart that is used by insurance companies to calculate the statutory reserve and cash surrender values of life insurance policies. A mortality table shows the death rate at any given age in terms of the number of deaths that occur for every thousand individuals of that age; it provides statistics regarding the likelihood that a person of a given age will live X number of years. This allows the insurance company to assess risks in policies.

BREAKING DOWN 'Valuation Mortality Table'

A valuation mortality table typically has a safety margin integrated into the mortality rates to protect the insurers. Life insurance companies use valuation mortality tables to determine the amount of liquid assets that they are required by statute to set aside for claims and benefits - the legal reserve.

  1. Mortality Table

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  3. Actuarial Risk

    The risk that the assumptions that actuaries implement into a ...
  4. Cash Surrender Value

    The sum of money an insurance company will pay to the policyholder ...
  5. Actuarial Analysis

    The examination of risk by a highly educated and certified professional ...
  6. Qualitative Analysis

    Securities analysis that uses subjective judgment based on nonquantifiable ...
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