Which term refers to the average number of months an insured is projected to live based on medical history and mortality factors?

The term that refers to the average number of months an insured is projected to live, taking into account medical history and various mortality factors, is life expectancy. Life expectancy is a statistical measure that represents the average duration of life for an individual within a certain population, often adjusted for health conditions and age, as well as historical data and trends. This term is crucial in the context of insurance, as it helps insurers evaluate risks and establish premiums for life insurance policies based on the expected lifespan of the insured individuals.

Other options, while related in the realm of insurance and statistics, do not accurately define this concept. Life settlements pertain to a financial transaction where a life insurance policy is sold to a third party for a lump sum, which does not directly relate to the expected longevity of the insured. The morbidity rate refers to the incidence of disease or disability, not to life expectancy itself. Mortality tables provide a statistical representation of mortality rates across different contexts but do not encapsulate the concept of life expectancy as an individual’s average expected lifespan based on their specific circumstances.