Ultimate Mortality Table


  • 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.

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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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