Glossary term
Select Life Table
A select life table is a mortality table that reflects recently underwritten insured lives during an initial select period.
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What Is a Select Life Table?
A select life table is a mortality table that reflects the expected mortality of recently underwritten insured lives during an initial select period. The table recognizes that people who recently passed underwriting may have lower near-term mortality than the broader insured population.
Life insurers use select mortality assumptions because underwriting creates a temporary selection effect. A newly issued policyholder who just qualified for coverage may be healthier, on average, than a similar-age policyholder whose underwriting occurred many years earlier.
Key Takeaways
- A select life table reflects mortality during the period soon after underwriting.
- It is used in life insurance pricing, reserves, and actuarial analysis.
- The select period usually gives way to ultimate mortality assumptions later.
- The table is a population assumption, not a personal lifespan prediction.
How the Select Period Works
When an insurer underwrites a life insurance applicant, it gathers health, age, lifestyle, and other risk information. That underwriting process can screen out or price higher-risk applicants. For a period after issue, the insured group may show lower mortality than a comparable group without recent underwriting.
A select life table captures that early-duration effect. Mortality rates may depend on both issue age and policy duration. After the select period ends, the table may move to ultimate rates that no longer reflect the same recent-underwriting advantage.
Select vs. Ultimate Mortality
Term | What it reflects | Insurance use |
|---|---|---|
Select mortality | Recently underwritten insured lives | Early policy durations |
Ultimate mortality | Mortality after the select effect wears off | Later policy durations |
Aggregate mortality | Blended experience across durations | Broader population or portfolio analysis |
Where It Matters
Select life tables matter most inside actuarial pricing and reserve work. A consumer usually will not compare tables directly, but the assumptions affect life insurance premiums, reserves, policy values, and insurer financial reporting. The concept also helps explain why underwriting status can affect life insurance cost.
The Bottom Line
A select life table is an actuarial tool for the early period after life insurance underwriting. It helps insurers price and reserve for the temporary mortality advantage of recently selected insured lives.