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Mortality information beefed up

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The American population continues to get older, and as it does, life insurers are going to need ever-better information about older Americans. Tillinghast, the insurance consulting practice of Towers Perrin, released its “Older Age Mortality Study” in 2005, which spurred a desire for more information. The firm’s newest release, “Tillinghast Older Age Mortality Study” (TOAMS 2), includes some interesting data for insurers and advisors.

“From 2000-2005, there has been a $6.6 billion increase in exposures in the TOAMS studies at issue ages 75 and above,” says Mike That, principal at Towers Perrin, “This reflects an overwhelming increase in sales activity at the very high-issue ages.” That’s encouraging news for senior advisors who are trying to fit life insurance into an overall estate plan for their clients.

Other key findings include the following:

  • Overall mortality in TOAMS 2 was 74 percent of 2001 Valuation Basic Mortality Table; it was 78 percent for TOAMS.
  • Mortality for men was 73 percent of 2001 VBT and 77 percent for women.
  • Preferred nonsmoker mortality was 58 percent of 2001 VBT.

The report says the results highlight the need for pricing actuaries to better refined as they determine pricing mortality.

The report can be purchased from Towers Perrin. To find out more, visit


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