Ending A Mortality Table
In practice, it is useful to have an ultimate age associated with a mortality table. Once the ultimate age is reached, the mortality rate is assumed to be 1.000. This age may be the point at which life insurance benefits are paid to a survivor or annuity payments cease.
Four methods can be used to end mortality tables:
- The Forced Method: Select an ultimate age and set the mortality rate at that age equal to 1.000 without any changes to other mortality rates. This creates a discontinuity at the ultimate age compared to the penultimate and prior ages.
- The Blended Method: Select an ultimate age and blend the rates from some earlier age to dovetail smoothly into 1.000 at the ultimate age.
- The Pattern Method: Let the pattern of mortality continue until the rate approaches or hits 1.000 and set that as the ultimate age.
- The Less-Than-One Method: This is a variation on the Forced Method. The ultimate mortality rate is set equal to the expected mortality at a selected ultimate age, rather 1.000 as in the Forced Method. This rate will be less than 1.000.
Read more about this topic: Life Table
Famous quotes containing the words mortality and/or table:
“The mortality of all inanimate things is terrible to me, but that of books most of all.”
—William Dean Howells (1837–1920)
“The best thing about Sassy Seats is that grandmothers cannot figure out how they work and are in constant fear of the child’s falling. This often makes them forget to comment on other aspects of the child’s development, like why he is not yet talking or is still wearing diapers. Some grandmothers will spend an entire meal peering beneath the table and saying, “Is that thing steady?” rather than, “Have you had a doctor look at that left hand?””
—Anna Quindlen (20th century)