Demographic assumptions evaluates the projected benefits of all the party or organization in a certain plan. These demographic assumptions include assumptions about mortality, disability, termination of employment, and retirement.
Demographic Assumptions includes:
· Insurance Mortality
The Insurance Mortality is the amount charged by the Insurer for delivering the guaranteed Sum Assured on premature death of the policyholder.
The purpose of the Insurance Mortality table is to store the sum charged every year by the Insurer to the policyholder to deliver the life cover.
· Insurance for Morbidity
Morbidity on insurance terms is the insurance coverage provided by the insurer to the policyholder for the specified illness of the policyholder.