The Fusion of Blockchain and Special Data
Posted: Thu Jan 23, 2025 5:09 am
Can consumers use premiums to infer their own mortality at a certain age?
Term life insurance has a simple structure, and your premiums directly reflect the mortality rate.
For example, a 30-year-old non-smoking male takes out a Bowtie term life insurance policy with a sum insured of $1 million and a monthly premium of $38. We can directly estimate that the insured person’s mortality rate for that month is approximately (or less than) 0.0038% (i.e., 38 / 1,000,000); while the mortality rate for that year is approximately 0.046% (i.e., (38 X 12) / 1,000,000).
Although the above mortality rate is 0.046%, which seems moj database very low, it still has a chance of happening. The mortality rate is 0.046%, which means that we estimate that among 1 million 30-year-old non-smoking men, about 460 will die within one year due to diseases or accidents. However, we cannot predict who these unfortunate 460 people will be.
The Hong Kong Actuarial Society published the " Hong Kong Life Insurance Insured Mortality Report 2018 " in 2020 . The study covers life insurance insured data from 17 major insurance companies from 2010 to 2017. The Institute compared the research results with the 2001 Hong Kong Life Insurance Insured Mortality Report (covering data from 1991 to 2000) and found that:
Term life insurance has a simple structure, and your premiums directly reflect the mortality rate.
For example, a 30-year-old non-smoking male takes out a Bowtie term life insurance policy with a sum insured of $1 million and a monthly premium of $38. We can directly estimate that the insured person’s mortality rate for that month is approximately (or less than) 0.0038% (i.e., 38 / 1,000,000); while the mortality rate for that year is approximately 0.046% (i.e., (38 X 12) / 1,000,000).
Although the above mortality rate is 0.046%, which seems moj database very low, it still has a chance of happening. The mortality rate is 0.046%, which means that we estimate that among 1 million 30-year-old non-smoking men, about 460 will die within one year due to diseases or accidents. However, we cannot predict who these unfortunate 460 people will be.
The Hong Kong Actuarial Society published the " Hong Kong Life Insurance Insured Mortality Report 2018 " in 2020 . The study covers life insurance insured data from 17 major insurance companies from 2010 to 2017. The Institute compared the research results with the 2001 Hong Kong Life Insurance Insured Mortality Report (covering data from 1991 to 2000) and found that: