It may be an increase or a decrease. Monthly Deductions Reference to the charges deducted monthly from the account value on a universal life contract. The charges consist mainly of mortality and expense costs, and premiums for riders and supplementary benefits. Moral Hazard Determining whether or not an insurance applicant's financial situation and moral behavior represent a hazard that could affect that person as a standard insurable risk, as revealed by considering the applicant's habits, environment, mode of living, and general reputation. This information is usually obtained during a personal history interview conducted by telephone with the home office underwriting department, or by an inspection report conducted by a consumer investigative agency.
Morbidity Refers to the potential loss of health for a specific population.
The frequency of deaths in proportion to a specific population. The mortality charge is similar to a one-year term rate and increases with the insured's attained age. A provision of an annuity contract under which the company agrees to continue to pay benefits, even though the annuitant lives longer than is predicted in the annuity table. Mortality Ratio A rough measure of mortality experience that can be calculated from annual statement data. The difference between the estimated number of deaths listed on a mortality table and actual mortality experience.