# Ultimate Mortality Table

Definition

• A mortality table that omits data from the first few years after an individual has been approved for a life insurance policy. Because of the health exams required prior to a life insurance application, those approved for life insurance policies are statistically healthier, and by extension less likely to die, than those from a random cross-section of people. Over time, the average heath of an individual approved for life insurance will normalize, but including data from those in the first few years of a life insurance policy will create a statistical selection bias, so to avoid skewing the data, they are omitted when making an ultimate mortality table.

Synonyms
exacting the probability of death, unbiased mortality table, grim reaper's handbook, probabilities of dying, life-expectancy data

## Related Terms and Acronyms

• Actuarial Table Definition,
• A table used in actuarial science that outlines the statistical probability that an individual of a specific age and sex will die within a year.
• Actuary Definition,
• An individual who assesses the mechanisms, mathematics and complexities of risk and uncertainty.
• Incontestability Clause Definition,
• A clause that places a time limit on how long an insurer has to void a policy due to a policyholder's accidental misstatement in his or her life insurance application.
• Insurance Score Definition,
• A score used by those in the insurance industry to determine how likely a claim will need to be paid out for an individual or entity.
• Selection Bias Definition,
• A statistical error made when non-random data is added into a dataset.
• Self-Selection Bias Definition,
• A selection bias that occurs when individuals join a sample group voluntarily.
• Survival Analysis Definition,
• A statistical analysis of how likely someone or something will survive to a set date.
• Yearly Probability of Dying Definition,
• The likelihood that an individual of a certain age and gender will die within a year.
• Yearly Probability of Living Definition,
• The likelihood that an individual of a certain age and gender will still be alive after a year has passed.
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