ultimate mortality table


Definition of ultimate mortality table

: a mortality table based on experience from which the effect of medical selection has been eliminated by the passage of a stated period (as five years)

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Statistics for ultimate mortality table

Last Updated

24 Jan 2020

Cite this Entry

“Ultimate mortality table.” The Merriam-Webster.com Dictionary, Merriam-Webster Inc., https://www.merriam-webster.com/dictionary/ultimate%20mortality%20table. Accessed 27 January 2020.

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ultimate mortality table


Financial Definition of 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

Most mortality tables, like this one from the IRS, show what percentage of a population or number per 100,000 people who will 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 certain year is likely to live. This information is based on large quantities of statistical information about actual ages at death and other factors.

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.

Source: Investing Answers

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