Mortality risk
\mɔrˈtæləti\ \rɪsk\
Mortality risk is the risk that an individual or population will die sooner than expected, potentially leading to negative financial consequences.
The primary holders of mortality risk are life insurers, who offer products such as term life insurance or whole life insurance. These products become more costly if the insured dies earlier than projected.
Mortality risk is often viewed as a natural hedge to longevity risk. Insurers and reinsurers may balance their portfolios by combining business lines exposed to mortality risk (e.g., life insurance) with those exposed to longevity risk (e.g., annuities), helping to mitigate overall exposure.
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