If the underlying mortality assumption is too low, a life insurer may underestimate the actual cost of insurance and may have to pay out more death benefit claims than it had forecast. (investopedia.com)
Life insurance rates are based on mortality assumptions, how long a person might expect to live. (hinermangroup.com)
Since all life insurance pricing is based on mortality assumptions, the more a life insurance company knows about the risk, the more reasonably they can price the product. (hinermangroup.com)