The Valuation Basic Table, or VBT, is the baseline mortality table published by the Society of Actuaries that life settlement underwriters use as the starting point before applying a multiplier for an individual’s health. The 2015 VBT has been the working standard across the settlement market; verify whether a newer table is in general use in 2026.
When an underwriter writes “220% of the 2015 VBT,” it means the insured is expected to die at roughly 2.2 times the rate of the baseline population of the same age, gender and smoking status. That multiplier is what turns a general table into a specific assessment.
This page explains what the table is, why the multiplier is the number that moves an offer, and what happened to pricing when the market changed tables.
In This Article
- The Precise Definition
- Why It Matters If You Are Considering Selling a Policy
- How the Multiplier Translates Into Years
- Why the Table Version Matters
- How It Shows Up in a Real Transaction
- Common Misunderstandings
- A Worked Example (Hypothetical Numbers)
- Request a Free Policy Review
- Frequently Asked Questions
The Precise Definition
A mortality table lists, for each age, the probability that a person will die within the next year. The VBT is a family of such tables built by the Society of Actuaries from large volumes of insured-population experience, split by gender, smoking status and in some versions by underwriting class and duration since issue.
It is called a “basic” table because it reflects expected mortality without the conservative padding that regulators require in valuation tables used for reserving. That makes it a reasonable neutral starting point for pricing rather than a deliberately cautious one.
Underwriters do not use the table alone. They read the medical file, decide how much worse (or better) than baseline this specific person’s mortality looks, and express that as a percentage multiplier applied to the table’s rates.
Why It Matters If You Are Considering Selling a Policy
Because the multiplier is the number that drives the offer. A rating of 100% describes someone with baseline mortality for their age and gender, which corresponds to a long projected life expectancy and, in the settlement market, a modest offer or no offer at all. A rating of 200% or 300% describes materially impaired health, a shorter projected life expectancy, and a substantially higher percentage of face value.
It also explains why two 78-year-olds with identical $500,000 policies can receive completely different offers. Age and face amount are the same; the multiplier is not.
And it explains why complete medical records matter so much. The multiplier is derived from documented impairments. Impairments that are not in the file cannot raise the multiplier, and an unraised multiplier is a lower offer.
How the Multiplier Translates Into Years
Roughly speaking, doubling the mortality rate does not halve remaining life expectancy – the relationship is not linear, because mortality rates themselves rise steeply with age. At advanced ages, a given multiplier compresses life expectancy more sharply than it would at younger ages.
What is reliable is the direction: a higher multiplier always means a shorter projected life expectancy, and underwriters report both the multiplier and the resulting median life expectancy in months so nobody has to do the conversion by hand.
If you receive a report showing only one of the two figures, ask for the other. Seeing both makes it much easier to compare reports from different underwriting firms.
Why the Table Version Matters
Tables get updated as populations live longer. When the settlement market moved from the 2008 VBT to the 2015 VBT, the newer table reflected longer projected lifespans across much of the insured population. Applying the same multiplier to a longer-living baseline produced longer life expectancies – and longer life expectancies meant more projected premium payments and lower policy valuations.
That shift repriced the market. Portfolios that had been valued on the older table were rewritten, and offers on new files generally came in lower than they would have under the prior baseline. It is a good illustration of how a technical actuarial choice reaches all the way down to a homeowner’s kitchen table.
Because table adoption is not simultaneous across every buyer and underwriter, it is fair to ask which table version and which multiplier underlie an offer you are considering in 2026, and whether a newer VBT has come into use.
| Mortality rating | What it describes | Direction of effect on life expectancy | Direction of effect on offer |
|---|---|---|---|
| 100% of VBT | Baseline insured mortality for age and gender | Longest | Lowest or no offer |
| 150% of VBT | Moderate documented impairment | Shorter | Modest |
| 200% of VBT | Roughly twice baseline mortality | Shorter still | Meaningfully higher |
| 300%+ of VBT | Significant impairment | Substantially shorter | Higher end of the range |
| 2008 VBT vs 2015 VBT | Older vs newer baseline population | 2015 reflected longer lifespans | Shift generally lowered valuations |
How It Shows Up in a Real Transaction
You will rarely see the raw table. What you will see, if you ask for a copy of your life expectancy report, is a summary page listing the median life expectancy in months, the mortality multiplier as a percentage, the table version it is measured against, and often a survival curve.
The buyer feeds the curve, not just the single median, into a pricing model along with projected premiums, a discount rate reflecting their cost of capital, and transaction costs. The output is a bid.
Because different underwriting firms can rate the same records differently, buyers frequently order two reports and blend them. If one report is far more favorable than the other, ask how the blend was done, since it directly affects your number.
Common Misunderstandings
“The VBT tells me how long I will live.” It does not describe you at all. It describes a large insured population, and the multiplier is what maps you onto it. Even then, the output is a median for a cohort.
“A higher percentage means healthier.” The opposite. Higher multiplier means higher mortality, which means shorter projected life expectancy.
“Everyone uses the same table and the same method.” Table version, underwriting methodology and impairment weighting all vary between firms, which is why results differ.
“Once I get a rating it is permanent.” Ratings age. If your health changes materially, updated records can produce a new assessment, and reports have a shelf life buyers pay attention to.
A Worked Example (Hypothetical Numbers)
These figures are illustrative and rounded. They are not an offer and not a prediction for any real policy.
Two women, both 79, each own a $400,000 guaranteed universal life policy with an $8,000 annual premium and no meaningful cash surrender value. Underwriting rates the first at 105% of the 2015 VBT – baseline health, no significant impairments – producing a median life expectancy of about 132 months. The buyer projects eleven years of premium, roughly $88,000 before any modeling of the discount rate, and the file draws a token offer or none at all.
The second is rated at 250% of the same table after records document advanced COPD and two hospitalizations, producing a median life expectancy of about 64 months. The buyer projects a little over five years of premium and bids $96,000, which is 24% of face value – inside the ordinary 10% to 35% band.
Identical policies, identical age, identical carrier. The only variable that moved was the multiplier.
Request a Free Policy Review
Mortality math is the buyer’s job, not yours. Your job is to make sure the policy and the medical record are fully and accurately presented. Send the policy cover page for a free policy review in 2026, or call (305) 209-7183 with questions first. Pine Lake works with policies of $100,000 or more in death benefit and typically pays more than cash surrender value. Eligibility and rules vary by state. This page is educational only and is not medical, legal, tax or investment advice.
Frequently Asked Questions
What does VBT stand for?
Valuation Basic Table. It is a family of mortality tables published by the Society of Actuaries and built from insured-population experience, broken out by gender and smoking status. Settlement underwriters use it as the baseline they rate individuals against.
What does ‘200% of the 2015 VBT’ mean?
It means the insured is expected to die at roughly twice the annual rate of the baseline population of the same age, gender and smoking status in the 2015 table. Higher percentages mean higher mortality and shorter projected life expectancy. Underwriters usually report the resulting life expectancy in months alongside the percentage.
Is a higher VBT percentage good or bad for my offer?
A higher percentage generally produces a higher offer, because the buyer projects fewer years of premium payments before the death benefit is paid. It is an uncomfortable trade to think about. It is also only one of several inputs, alongside face amount, premium load and policy type.
Which VBT is used in 2026?
The 2015 VBT has been the working standard in the settlement market, but adoption is not uniform across every underwriter and buyer, and newer tables can come into use. It is reasonable to ask which table version and multiplier underlie any offer you receive. Verify the current standard rather than assuming.
Why did the move from the 2008 to the 2015 table matter?
The 2015 table reflected longer projected lifespans, so applying the same multiplier produced longer life expectancies. Longer life expectancies mean more projected premiums and lower policy values. The change repriced the market and lowered valuations relative to the older baseline.
Is the VBT the same as a Social Security life table?
No. Social Security tables reflect the general population; the VBT reflects insured lives, which are healthier on average because they passed medical underwriting. That difference alone produces materially different numbers at the same age.
Can I see the multiplier that was applied to me?
Ask for a copy of your life expectancy report. It typically states the median life expectancy in months, the mortality multiplier, and the table version used. Reviewing it is also how you confirm the underwriter had your complete medical file.
Does the table change if I am a smoker?
Yes. The VBT is published separately for smokers and nonsmokers, and smoking status shifts the baseline before any individual impairment multiplier is applied. Accurate smoking history in the medical file matters for the same reason every other documented fact does.
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Pine Lake Life Solutions does not purchase life insurance policies and does not provide legal, tax, or investment advice. Information provided is for educational purposes only. Eligibility for any option, including life settlements, is not guaranteed and depends on individual circumstances, policy terms, underwriting, and market conditions. Consult independent legal, tax, or financial professionals before making decisions regarding a life insurance policy.