Life Insurance✓ Verified · outline & fact-checked · Sep 2026Difficulty 1/5
A mortality table is used by life insurers primarily to:
Select an option to reveal the answer and the full 3-part explanation — free, no signup.
Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
A mortality table shows, for each age, the expected rate of death in a population. The insurer uses these probabilities — together with interest and expense assumptions — to price premiums and maintain reserves. More deaths than projected at a given age mean more claims, which is why underwriting groups risks by health and age.
Why the other options are wrong
- B) Cash values are contractually scheduled in the policy; mortality tables are an actuarial pricing tool, not a cash-value promise.
- C) Death benefits are generally income-tax-free under IRC Section 101; mortality tables play no role in taxation.
- D) Estate tax depends on the size of the estate under federal law, not on mortality statistics.
Memory hook
Mortality table = the actuarial crystal ball: how many of each age group die, so premiums cover the claims. Death is predictable in bulk, not in person.