What do actuaries mainly use mortality tables for?

• A. To assess the benefits of a defined benefit plan
• B. To understand the likelihood of survival in a specific demographic
• C. To project retirement plan contributions
• D. To allocate investment in target-date funds

Answer: (B)

Mortality tables are primarily utilized by actuaries to assess the likelihood of survival within specific demographic groups. These tables compile statistical data regarding life expectancies, death rates, and other related metrics for different segments of the population. By analyzing this information, actuaries can develop insights into how long individuals within certain age groups, genders, health statuses, and other characteristics are expected to live.

This understanding is crucial for various applications such as life insurance underwriting, pension planning, and annuity pricing. For example, life insurers need to determine the probability of claims being paid out over an individual's lifetime, while pension plans must calculate future obligations based on the anticipated lifespan of plan participants.

In contrast, while mortality tables can inform certain aspects of defined benefit plans or influence retirement plan contributions, their primary function is centered around survival probabilities in various demographics. This specificity is what makes the correct option particularly focused on the fundamental use of mortality tables in actuarial science.