what is a valuation mortality table 
a valuation mortality table is a statistical chart used by insurance companies to help calculate the statutory reserve and cash surrender values of life insurance policies a mortality table shows the death rate at any given age based on the number of deaths that occur for every thousand individuals of that age it provides statistics indicating the likelihood that a person of a given age will live a set number of years this allows the insurance company to assess risks in individual policies and in their overall insured population insurance companies then use this information to set premiums for how much your life insurance costs understanding valuation mortality tablelife insurance companies use valuation mortality tables to determine their legal reserve the amount of liquid assets they are required by law to set aside for claims and benefits those statutory reserves are one factor that companies must consider as they design new products and set premiums the national association of insurance commissioners naic sets minimum reserve requirements for insurance and related products and updates that guidance periodically 1a valuation mortality table typically has a safety margin integrated into the mortality rates to protect the insurers regulators often require the use of safety margins by carriers many carriers build in their own additional margins as well as those included in regulatory tables those margins are also applied differently for insurance policies and annuities 2insurers use this safety margin to build a buffer in case more people pass away than expected leading to more claims having to be paid out without a reserve an insurance company could go bankrupt from paying too many claims 