Valuation Mortality Table
Key takeaways
A valuation mortality table is a statistical chart insurers use to estimate death rates at each age for pricing life insurance and setting statutory reserves.
Tables incorporate safety margins required by regulators (and often strengthened by insurers) to protect against unexpectedly high claims.
Actuarial age and premiums depend on age, gender, tobacco use, health, and family history; longevity expectations affect how much you pay.
Public bodies that publish or mandate tables include the NAIC, IRS, and the Society of Actuaries (SOA).
What it is
A valuation mortality table shows the probability that a person of a given age will die within a specified period. Insurers use these probabilities to estimate how many policyholders will die and when, which drives premium setting, benefit design, and the calculation of statutory reserves and cash surrender values.
How it works
Insurers aggregate mortality data into age-specific death rates (typically per 1,000 lives).
Actuaries use those rates to compute expected future claims and the present value of benefits, which determines required reserves and appropriate premium levels.
Regulators (for example, the National Association of Insurance Commissioners) prescribe minimum reserve methods and often require mortality tables to include safety margins. The Commissioners Standard Ordinary (CSO) tables—developed with the Society of Actuaries—are widely used in the U.S.
The IRS also publishes actuarial tables for valuing annuities, life estates, and related items under the tax code.
Safety margins and reserves
Valuation tables commonly include conservative margins so insurers hold enough liquid assets if mortality worsens. Carriers may add further margins. These buffers reduce the risk that an insurer will become insolvent if claims exceed expectations.
Actuarial age and factors that affect it
Actuarial age (or expected longevity) is an average estimate used for pricing and planning. Individual factors considered by underwriting algorithms include:
Chronological age
Gender
Tobacco use
Current health (blood pressure, cholesterol, diagnoses)
* Family health history
The longer the expected longevity, the lower the typical premium—because the insurer expects to collect more premiums before paying a death benefit.
Example
If a 40‑year‑old non‑smoker is expected (by the table) to live to age 81, an insurer anticipates 41 years of premium payments before a death benefit may be paid. Pricing relies on large pools of policyholders so individual departures from the average do not materially change pricing outcomes.
How often tables are updated
Different authorities update tables at different intervals. For example:
The Society of Actuaries and NAIC periodically release new CSO tables (the 2017 CSO added substantial new data and lower mortality rates than earlier versions).
The IRS updates certain actuarial tables on its own schedule for tax valuation purposes.
Why it matters for consumers
Knowing your actuarial age can help you:
Understand how an insurer will price your policy
Compare quotes more effectively
* Inform retirement and Social Security timing decisions
Online calculators can provide rough estimates of actuarial age, but underwriting can differ across insurers.
Typical mortality context
Aggregate mortality statistics vary by year and age group. For example, national crude death rates and life expectancy figures (published by public health agencies) provide context for the trends reflected in actuarial tables: lower mortality rates generally lead to later expected ages at death and influence updated tables.
Bottom line
Valuation mortality tables are core actuarial tools that translate population death data into the probabilities insurers use to price products and hold required reserves. They balance historical experience, statistical projections, and regulatory conservatism to protect policyholders and insurers alike. Sources commonly referenced include the NAIC, Society of Actuaries, IRS actuarial tables, and public health data.