GLOSSARY

Canadian Financial, Real Estate and Mortgage Glossary

How often this word is used
 
^
38% - Moderately

Ultimate Mortality Table


Synonyms:exacting the probability of death, grim reaper's handbook, life-expectancy data, probabilities of dying, unbiased mortality table
Filed Under: insurance
Tags: actuarial, insurance
 

Definition of ultimate mortality table

ultimate mortality table
1. A mortality table that omits data from the first few years after an individual has been approved for a life insurance policy. Because of the health exams required prior to a life insurance application, those approved for life insurance policies are statistically healthier, and by extension less likely to die, than those from a random cross-section of people. Over time, the average heath of an individual approved for life insurance will normalize, but including data from those in the first few years of a life insurance policy will create a statistical selection bias, so to avoid skewing the data, they are omitted when making an ultimate mortality table.

Related Terms and Acronyms:

  • actuarial table   A table used in actuarial science that outlines the statistical probability that an individual of a specific age and sex will die within a year.
  • actuary   An individual who assesses the mechanisms, mathematics and complexities of risk and uncertainty.
  • incontestability clause   A clause that places a time limit on how long an insurer has to void a policy due to a policyholder's accidental misstatement in his or her life insurance application.
  • insurance score   A score used by those in the insurance industry to determine how likely a claim will need to be paid out for an individual or entity.
  • selection bias   A statistical error made when non-random data is added into a dataset.
  • self-selection bias   A selection bias that occurs when individuals join a sample group voluntarily.
  • survival analysis   A statistical analysis of how likely someone or something will survive to a set date.
  • yearly probability of dying   The likelihood that an individual of a certain age and gender will die within a year.
  • yearly probability of living   The likelihood that an individual of a certain age and gender will still be alive after a year has passed.

Search the Glossary

Mortgage Rates
Ready access to and relationships with a vast array of lenders gives our brokers the unique ability to offer you amazing mortgage rates and flexible products.
Mortgage Rates
 
Mortgage Calculators
We took all of your suggestions over the years and added them all to our new and improved mortgage calculators. We think they're pretty good, but don't take our word for it, try them it out for yourself!
Mortgage Calculators
 
Contact a Mortgage Broker
For up-to-the-minute mortgage rates, quick closing specials, or local rates and discounts from regional lenders, contact us and we will connect you with a broker that knows your area.
Mortgage Brokers Know Your Area