Glossary term
Select Mortality Table
A select mortality table shows death rates for insured lives during the period shortly after underwriting or risk selection.
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What Is a Select Mortality Table?
A select mortality table shows expected death rates for insured lives during the period shortly after underwriting or risk selection. It is closely related to a select life table and is used by actuaries in life insurance pricing, valuation, and reserve work.
The table reflects the fact that underwriting can temporarily improve the expected mortality profile of a newly issued block of policies. People who recently qualified for life insurance may be healthier, on average, than people of the same age who were underwritten long ago or not underwritten recently.
Key Takeaways
- Select mortality tables reflect recently selected or underwritten lives.
- They are used for actuarial pricing, reserves, and policy-value assumptions.
- The select effect usually fades after a defined period.
- The table does not predict one person's lifespan.
How Select Mortality Is Applied
A mortality table can vary by age, sex, underwriting class, smoker status, policy duration, and product type. A select mortality table adds the idea of duration since selection. In the first years after a policy is issued, expected mortality may be lower because the insured recently passed underwriting.
After the select period, mortality assumptions generally move toward ultimate rates. This distinction allows insurers to price and reserve more accurately than if every insured life of the same age were treated identically regardless of underwriting timing.
Select Mortality Table vs. Standard Mortality Table
Table type | Focus | Typical use |
|---|---|---|
Select mortality table | Mortality after recent underwriting | Early policy-year assumptions |
Ultimate mortality table | Mortality after the select period ends | Later policy-year assumptions |
General life table | Broad population or group mortality | Demographic or broad actuarial analysis |
Why the Distinction Matters
The distinction can affect how insurers estimate future claims and required reserves. If an insurer ignores the select effect, pricing may be less accurate. If it overstates the select effect, the insurer may underprice risk. For consumers, the visible result is indirect: underwriting class, policy duration, and mortality assumptions all feed into life insurance cost.
The Bottom Line
A select mortality table is an actuarial mortality table for recently underwritten lives. It helps insurers account for the temporary selection effect created by life insurance underwriting.