The actuarial table showing the mathematical probability of death at a certain age.

The actuarial table showing the mathematical probability of death at a certain age.

• A. Dividend Paid-Up Additions
• B. Misrepresentation
• C. Health Savings Account (HSA)
• D. Mortality Table

Answer: (D)

Mortality tables are the tool actuaries use to quantify the chance of death at each age, typically showing the probability a person aged x will die within the next year. These tables are built from large population data and track surviving members year by year, enabling calculations of life expectancy, premiums for life insurance, and reserves for future payouts. In this context, describing an actuarial table that gives the mathematical probability of death at a certain age aligns exactly with what a mortality table does. The other terms relate to different concepts: one is about dividends used to purchase paid-up insurance additions, another concerns dishonesty in disclosures, and the last is a tax-advantaged savings account for medical expenses.

Mortality tables are the tool actuaries use to quantify the chance of death at each age, typically showing the probability a person aged x will die within the next year. These tables are built from large population data and track surviving members year by year, enabling calculations of life expectancy, premiums for life insurance, and reserves for future payouts. In this context, describing an actuarial table that gives the mathematical probability of death at a certain age aligns exactly with what a mortality table does. The other terms relate to different concepts: one is about dividends used to purchase paid-up insurance additions, another concerns dishonesty in disclosures, and the last is a tax-advantaged savings account for medical expenses.