Ultimate Mortality Table
What it is:
An ultimate mortality table lists the probabilities of death for people of different ages and gender.
How it works (Example):
Most mortality tables, like this one from the IRS, show what percentage of a population or number per 100,000 people who probably be alive when they reach the age indicated in the table.
Why it Matters:
Ultimate mortality tables show how long a person born in a certainis likely to live. This information is based on large quantities of statistical information about actual ages at death and other .
Insurance companies use this information to determine how long a policyholder might live. This helps them calculate a profitable price for life insurance, annuities and other financial products.