Summary |
Mortality is an important tool in actuarial kit. The Actuary needs an uptodate mortality table both for determination of premium rates and for calculation of valuation reserves. The mortality table has to be validated from time to time on the basis of experience. Therefore it is customary to conduct, periodically, investigations into the mortality experience of assured lives. Published mortality tables are also used outside the life office in other areas of work such as gratuity valuations, pension fund valuation, etc. Apart from the mortality of assured lives, a life office needs to investigate the mortality experience of annuitants for the purpose of pricing and calculation of valuation reserves under annuity policies.
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