The Treatment of Sub-standard Lives in Practice

Extract

Has it ever really been proved that the lives that we call under-average are under average? It would be very interesting indeed to have an investigation not of individual impairments, but of a block of lives that are rated-up, except, perhaps, the very heavily rated-up cases, just to see whether their mortality is really higher than of those we take at ordinary rates.

The purpose of this paper is to provide a basis for a discussion on the treatment of proposals for life assurance on sub-standard lives. To assist in this discussion a body of mortality data in respect of the sub-standard lives of a particular office is presented. The data relate to ordinary life assurances issued in this country subject to a diminishing lien. In the light of these data certain suggestions are made regarding the relative financial importance of the extra mortality of impaired lives in modem conditions. Apart from this statistical material, there is little that is new or original in the paper, although it is hoped that the author's relatively simple outlook on the subject may be of general interest and of assistance to students. The paper is concerned with the actuarial and practical aspects of the subject rather than with the medical aspects.