• Kritika Khandelwal

Mortality Rate Loading

The mortality rate is defined as the number of deaths in a given area or period per unit of time, scaled to the size of the population of that area or period.

They are explicitly used by the actuaries while calculating the premiums for various policies.

Loading primarily occurs in life and health insurance plans.

Mortality rate loading means some extra percentage of mortality than the standard mortality rates quoted in the table.

For your extra knowledge, I would like to add that in INDIA mortality table is published by the Mortality and Morbidity Investigation Committee within Insurance Information Bureau of INDIA (IIB).

You can click on the link given below, to know more about it.

Indian Assured Lives Mortality (2012-14)

In simpler words, for example, a loading of 10% is there on the standard mortality rates, then we will use 1.1 times the standard mortality rates while working out calculations for that particular policy.

Loaded mortality rates are generally used in cases where life is riskier to the insurer,i.e., if a person is more prone to risk than anticipated. Then, in that case, loaded mortality rates are used to cover the losses.


Written by: Kritika Khandelwal

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