What does premature death refer to in the context of insurance?

Premature death in the context of insurance specifically refers to death that occurs at a younger age than statistically expected. This concept is significant in life insurance underwriting because it highlights the financial risk to insurers when an individual dies before their life expectancy. This can impact policy premiums, benefits, and the overall financial planning for families and beneficiaries who may rely on the deceased for income or support.

When assessing life insurance, insurers often use mortality tables to analyze the expected lifespan of an individual based on various factors such as age, health, and lifestyle. A premature death can create a need for immediate financial support for the surviving dependents, making it crucial for insurers to manage this risk effectively.

The other options do not accurately reflect the definition of premature death. Death after retirement age typically aligns with expected lifespans, while death caused by insurance fraud is a criminal act unrelated to the concept of premature death. Additionally, death occurring during a policy review does not pertain to the age or statistical expectations of death, making it irrelevant to the definition.