What is the primary use of a mortality table in life insurance?

The primary use of a mortality table in life insurance is to estimate the probability of death at various ages, which is essential for determining premiums. Mortality tables provide statistics on the life expectancy and likelihood of death within specific age groups based on historical data. Insurers use these probabilities to assess risk and set appropriate premium rates for life insurance policies. Knowing the expected mortality rate helps the insurer ensure that premiums are adequate to cover claims while remaining competitive in the market.

The other choices focus on aspects that are not the main purpose of a mortality table. Tracking the ages of policyholders, for example, does not take into account the death probabilities that are central to pricing insurance products. Similarly, calculating retirement benefits and identifying common health issues do not relate directly to the function of mortality tables, which is strictly linked to mortality risk assessment.