What does the morality rate refer to?

The morality rate refers to the number of deaths per 1,000 people within a specific population and time frame. This statistical measure is crucial in the field of life insurance as it helps insurers assess the risk associated with providing life coverage. Understanding mortality rates allows insurers to calculate premiums, determine the financial stability of policies, and make informed decisions about underwriting.

In contrast, the average lifespan of individuals focuses on longevity, rather than the statistical occurrence of death, which is why it does not define mortality rate. The percentage of insured individuals pertains to market penetration and coverage but is not related to calculations of mortality. Lastly, the rate of policy renewals deals with the behavior of policyholders regarding keeping their policies active, which is unrelated to mortality statistics.