What does a morbidity table represent in the context of insurance?

A morbidity table represents the likelihood of an insured becoming disabled, which is crucial in the context of insurance, particularly for health and disability insurance policies. This table provides statistical data reflecting the probability of various levels of disability or illness that could prevent an individual from performing their normal work activities.

Understanding morbidity helps insurers assess risk and determine how to set premiums, benefits, and coverage terms. It plays a vital role in the underwriting process, aiding in the prediction of claims that may arise due to disability among policyholders.

The other options pertain to different concepts. For instance, mortality tables data would relate to the probability of death rather than disability, and age demographics provide insight into the insured population's distribution but do not directly address disability risk. Finally, the expected length of time a policy remains active is more about policyholder behavior and renewals rather than inherent risks of morbidity. Thus, the focus of a morbidity table specifically addresses the probabilities surrounding disablement.