I have a life policy. I want to know how the insurers calculate mortality charges. Do they hike the charges every year with increase in age or keep it fixed at the age at which the policy was taken?
Anirudh Bhasin, Noida
Actuaries of the insurance firms keeping in view the life expectancy for different age groups calculate mortality charges. Mortality tables are based on the mortality experience of life insurance companies. They determine life insurance premiums using these. Mortality charges do increase every year with the increase in age, but the premium doesn’t get affected because the actuaries factor in the increase at the time of issuing the policy.
