Aggregate Mortality Table

What Does Aggregate Mortality Table Mean?

An aggregate mortality table is a tool used by actuaries and other insurance professionals to gather key data on death rates. These tables provide death rate information for life insurance buyers without taking into account their age or the time of purchase.

Insuranceopedia Explains Aggregate Mortality Table

Life insurance companies use mortality tables to help determine appropriate premium pricing. If premiums are set too low, insurers risk financial losses due to excessive payouts in death benefits. Conversely, if premiums are too high, insurers may lose money by failing to sell enough policies. Advanced mathematics, combined with data from mortality tables, is used to calculate the optimal premium prices.