The aim of this study is to examine the impact of different adjustment multipliers (β) on mortality tables and their effect on premium calculation in the life insurance industry. In this research, standard mortality tables are compared with mortality tables adjusted by modification multipliers to explore the differences in insurance risks for individuals with varying health statuses. The results show that as the value of the adjustment multiplier (β) increases, the mortality rate significantly rises. These changes directly impact the calculation of premiums, with premiums being higher for individuals with more health problems. Furthermore, the study emphasizes the importance of using specific mortality tables at younger ages, as health status changes during these periods can significantly affect risk assessment and premium determination. The use of these tables allows insurers to calculate fairer premiums aligned with the actual health status of policyholders, thereby improving both the accuracy of insurance risk assessments and their financial solvency, as well as strengthening their competitive position in the insurance market.
Aalaei et al. (Tue,) studied this question.