Actuarial tables (also called life expectancy tables, mortality tables,and life tables) are statistical tools used by companies, scientists, courts, and government agencies to predict the life expectancy of a person by their age, gender, and other factors. Naturally, the life expectancy of a person is a major factor when deciding the details of a life insurance policy.
So, an insurance salesman like Ned would use them to determine how much to charge for a policy of a given amount based on the specifics of his customer. He’d use those factors to determine the life expectancy of his client and based on their likelihood of dying during the term (duration) of the policy, would charge accordingly.
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