Special Mortality Table

Definition of "Special mortality table"

Suzie Bernstein real estate agent

Written by

Suzie Bernsteinelite badge icon

Chase International Realty

One used to determine the life expectancy of annuitants. Annuity buyers are not representative of the population as a whole, or of life insurance buyers. Because annuities pay an income for life, only those in good health, and who expect to live a long time, will spend their money for an annuity contract. Recognizing this, life insurers, who sell annuity contracts, use special mortality tables, which chiefly consider age and sex, to predict their deaths. For example, if a 50-year-old applicant purchases an IMMEDIATE ANNUITY for life with $100,000, the income would be less than that for a 70-year-old. Likewise, because women have longer life expectancies, their monthly income payments would be lower than men of the same age.

image of a real estate dictionary page

Have a question or comment?

We're here to help.

*** Your email address will remain confidential.
 

 

Popular Insurance Terms

Individual appointed by the insurance company as an independent contractor. The agent receives various expense allowances for office-associated expenses and direct commissions on products ...

Situation in which parties agree to take part in a structured settlement negotiation through the guidance of a neutral expert. By participating in this process, the parties do not agree ...

Coverage against all liability exposures of a business unless specifically excluded. Coverage includes products, completed operations, premises and operations, elevators, and independent ...

Difference in the amount of losses between the beginning and end of a time period. ...

Length of employment as measured to determine eligibility, vesting, and benefit levels for employee participants in tax qualified pension plans. There is often a requirement that years of ...

Method of calculating the life insurance policy's cash surrender value (CSV) not contingent upon the calculation of the policy's reserve such that the CSV will approximate the asset share ...

Relationship between occupation of an insured and degree of risk in such coverages as life, health, and workers compensation. Some occupations are more risky than others; for example, a ...

Explicit liability reserve, required by the national association of insurance commissioners (naic), established for all invested asset classes. Specific reserves are established for real ...

Provision under the Internal Revenue Code, Chapter 13, that specifies a transfer tax of 55% of the gift to a person at least two generations younger than the transferor (person who gives ...

Popular Insurance Questions