Mortality tables provide a cornerstone in many areas of actuarial science, including pricing and designation of life insurance, as well as calculating premiums, margins, and funding requirements. Mortality tables are produced by compiling vital statistics of a population including death count and cause, demographic data, and other factors that might be associated with death. Mortality tables are also used by private companies to assess financial risks and help them to manage future payments and liabilities such as pensions.

Mortality tables represent an essential tool in successfully managing life insurance companies and pension funds by helping to determine anticipated rates of mortality and the life expectancy of policyholders. Insurance companies use mortality tables to calculate an individual’s mortality rate, or death rate, and adjust premiums accordingly. In states that employ community-rating insurance, mortality tables are used to calculate the average mortality rate for a group of individuals of the same age and geographic area.

These mortality tables are used by the U.S. Social Security Administration to measure life expectancies and determine claims and payments. It is also useful in determining eligibility for Social Security benefits early retirement, and disability benefits.

Generally speaking, a mortality table is a statistical table that shows the number of deaths expected in the population during a specific period. The numbers shown are a combination of the actual number of deaths that occurred during the period and assumptions about what would have happened if an entire population had been observed throughout the period. The number of live births used in the mortality table calculations is typically based on national mortality data.

Mortality tables help to better understand and predict the likelihood of different causes of death as well as mortality trends in different populations. Mortality tables can be compilation of country-specific data, or based on data from global sample populations. By showing the rate of death in a population, mortality tables allow actuaries to develop appropriate insurance rates and pension plan payments. The information provided by mortality tables ultimately helps insurers, pension funds, and other financial institutions to assess the amount of risk in their respective portfolios and adjust accordingly.