What classification of risk is considered average based on mortality tables?

The classification of risk referred to as "Standard Risk" is defined as average when assessed against mortality tables. In life insurance, mortality tables provide data on the average life expectancy of individuals based on factors such as age and sex. A Standard Risk classification indicates that the individual presents a typical health profile and lifestyle, meaning they are neither particularly high nor particularly low risk for insurers.

This classification allows insurance companies to set premiums that reflect the average life expectancy of individuals within that group. Standard risks are thus expected to have a mortality rate that aligns closely with the established statistics in these tables. Understanding this classification helps in determining premiums and ensuring that those who fit into this category are adequately protected without paying excessive costs associated with high-risk classifications.

In contrast, other classifications such as Substandard Risk indicate higher-than-average risk, Preferred Risk represents lower-than-average risk, and Declined Risk refers to applicants who are considered uninsurable.