What is a Ultimate Mortality Table?
An ultimate mortality table lists the probabilities of death for people of different ages and gender.
How Does a Ultimate Mortality Table Work?
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 Does a Ultimate Mortality Table Matter?
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.