Complete actuarial life tables, parametric fitting, and graduation methods
Mortality tables (also called life tables) are fundamental tools in actuarial science that show the probability of death at each age. They're essential for pricing life insurance, calculating pension obligations, and understanding population longevity trends.
Think of a mortality table as a detailed roadmap of human lifespan—it tells you at each age: how many people are alive, how many die, and what's the probability of surviving to the next age.
The number of people alive at the beginning of each age. Starts with a base number (usually 100,000) and decreases as people die.
The number of people who die during each age interval. This is lx minus lx+1.
The probability of dying within one year for someone at age x. This is the key metric for insurance pricing. Formula: qx = dx / lx
The probability of surviving one more year. This is 1 - qx. Used to calculate multi-year survival probabilities.
The average number of years remaining for someone at age x. For example, e65 might be 20 years, meaning a 65-year-old can expect to live to 85 on average.
Gather data on deaths and exposures (person-years) by age. This could be from insurance company experience or population statistics.
Compute qx = deaths / exposures for each age. These raw rates often have random fluctuations due to small sample sizes.
Apply mathematical methods to smooth out random fluctuations while preserving the underlying mortality pattern. ADaaS uses Whittaker-Henderson graduation.
Using graduated qx values, calculate all other columns: lx, dx, px, ex, and more. ADaaS does this automatically.
All standard columns: age, lx, dx, qx, px, Lx (person-years lived), Tx (total person-years remaining), and ex (life expectancy).
Fit Gompertz, Makeham, and Weibull models to your mortality data. These mathematical functions describe mortality patterns with just a few parameters.
Whittaker-Henderson graduation to smooth raw mortality rates while maintaining the overall shape of the mortality curve.
Interactive charts showing qx by age, survival curves, and comparisons between raw and graduated rates.
Download complete life tables in CSV or Excel format for use in pricing models and regulatory filings.
Use mortality tables to calculate expected death benefits and set appropriate premiums for term life and whole life policies.
Estimate how long retirees will live to calculate pension fund liabilities and required contributions.
Compare your company's actual mortality experience against standard tables to identify if your portfolio is riskier or safer.
Generate standardized life tables for regulatory submissions and reserve calculations required by insurance authorities.
Upload your mortality data and generate complete life tables