The Impact of Using Iranian Life Table on Standard and Modified Premium of Various Life Insurance Products

In life insurance pricing problem, the probability of mortality is one of uncertainty factors that is calculated using the life table. The Iranian life table has been issued by the regulatory framework to insurance companies to be implemented since the beginning of 2021. Prior to this table, the French life table was used to calculate premiums. Due to the long-term nature of life insurance contracts, the effect of using Iranian life table on the premium of these products is very important. The research findings indicate that insurance premium calculated based on the French table for term and whole life insurance and endowment insurancelife annuity are  the Iranian table. Also, the effect of changes in age and changes in the term of the contract of life insurance products on the premium has been analyzed. Furthermore, the Adjustment multipliers of mortality probability for the insured with a specific health condition were calculated and the adjusted premiums compared to the standard condition were obtained for the tables of Iran and France. The difference between the adjusted premiums based on the tables of Iran and France are still evident.