Mortality rates are one of the most critical assumptions in life insurance. Actuaries often rely on the mortality rates published by Statistics Offices. Typically, these rates are provided on a yearly basis. However, actuarial cash flow models operate on a monthly scale. In this post, we will explore two common methods for transforming yearly rates into monthly ones: the constant rate and uniform distribution of deaths.

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## Transformation methods

When it comes to transforming yearly mortality rates into monthly ones, actuaries commonly employ two methods:

**Constant Rate**

The …