Modifying premiums for life insurance products using specific mortality tables

‎The aim of this study is to examine the impact of different adjustment multipliers (β) on mortality tables and their effect on premium calculation in the life insurance industry‎. ‎In this research‎, ‎standard mortality tables are compared with mortality tables adjusted by modification multipliers to explore the differences in insurance risks for individuals with varying health statuses‎. ‎The results show that as the value of the adjustment multiplier (β) increases‎, ‎the mortality rate significantly rises‎. ‎These changes directly impact the calculation of premiums‎, ‎with premiums being higher for individuals with more health problems‎. ‎Furthermore‎, ‎the study emphasizes the importance of using specific mortality tables at younger ages‎, ‎as health status changes during these periods can significantly affect risk assessment and premium determination‎. ‎The use of these tables allows insurers to calculate fairer premiums aligned with the actual health status of policyholders‎, ‎thereby improving both the accuracy of insurance risk assessments and their financial solvency‎, ‎as well as strengthening their competitive position in the insurance market‎.

کلیدواژه ها:

Longevity risk‎ ، ‎Life table‎ ، ‎Adjustment multipliers‎ ، ‎Mortality probabilities‎