Glossary

Mortality rate

The share of people of a given age expected to die within a year, often shown as deaths per 1,000; it is the foundation of life insurance pricing.

Also called: death rate, rate of mortality, qx

A mortality rate is the probability that a person of a given age will die within the next year. Actuaries write it as qx, where x is the age, and often express it as deaths per 1,000 people. A rate of 2 per 1,000 means a 0.2% chance of dying during the year. Mortality rates rise with age and differ by sex, smoking status and health.

Life insurance pricing starts with expected mortality. The basic cost of one year of coverage is the mortality rate times the amount at risk. Say, hypothetically, a 50-year-old's expected mortality rate is 3 per 1,000 and the policy has $500,000 at risk: the pure annual cost of the death risk is $500,000 × 0.003 = $1,500, before expenses, profit and investment income. This is why cost of insurance charges in universal life climb every year.

Underwriting sorts applicants into rate classes that reflect expected mortality relative to a standard. A preferred plus applicant is expected to die at well below the standard rate, while a table-rated applicant is priced at a percentage above it. Insurers base expectations on their own claims experience and on industry tables. See how life insurance premiums are calculated and life insurance rate classes: preferred plus to substandard.

Last reviewed October 4, 2026

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Related terms

Mortality table A chart showing, for each age, the probability of dying within a year and often the expected remaining lifetime, used to price and reserve for life insurance. Life expectancy The average number of additional years people of a given age are expected to live, calculated from mortality tables for a population or group. Cost of insurance (COI) The monthly charge a universal life policy deducts to pay for its death protection, based on the insured's age, rate class and the amount at risk. Rate class The underwriting category, such as preferred plus, standard or substandard, that sets the price an insurer charges for a given age and coverage. Mortality improvement The long-term decline in death rates at each age over time, which actuaries project forward when pricing life insurance, annuities and pensions.

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