What is defined as the risk of death in insurance terminology?

In insurance terminology, mortality specifically refers to the risk of death. It is a key concept within life insurance and statistical analysis, often used to calculate the likelihood of death within a specific population or demographic over a defined period. Mortality rates help insurers determine premiums and understand the risks associated with insuring individuals.

While morbidity refers to illness or the rate of disease within a population, and disability relates to the incapacity of an individual to perform standard tasks or work, these concepts do not directly address death. Systematic risk pertains to the broader financial markets and investments, focusing on risks that affect many assets simultaneously, and is not specifically linked to the risk of death itself.

Understanding these distinctions prevents confusion and emphasizes how mortality is critical in risk assessment in life and accident insurance, helping both the insurer and the insured to navigate related concerns effectively.