What does mortality mean in the context of insurance?

In the context of insurance, mortality refers specifically to the incidence of death within a population. This concept is crucial for life insurance companies, as it is used to assess risk and determine how much to charge for premiums. By analyzing mortality rates, insurers can predict how many policyholders are likely to pass away within a certain timeframe, which directly impacts the financial stability of their products.

To set premiums accurately, life insurers rely on statistical data regarding mortality rates across different demographics, such as age, gender, health status, and lifestyle factors. This information allows them to structure their products to ensure enough funds will be available to pay out death benefits when claims are made.

The other options focus on different aspects of insurance. The incidence of disability pertains to health insurance and does not directly relate to mortality. Denied claims percentage deals with claims processing rather than death rates. Life expectancy, while relevant in understanding mortality trends, does not capture the concept of mortality itself, which is solely focused on the occurrence of deaths within a specified group.