A factor that affects the cost of a life insurance policy is

Question

Quizplus · Accepted Answer

The mortality rate, or the likelihood of the insured passing away during the policy term, is an important factor in determining the cost of a life insurance policy. The higher the mortality rate for a particular age group, the higher the premiums for life insurance policies will be for that age group. Other factors that may affect the cost of life insurance policies include the amount of coverage, age, gender, health conditions, and lifestyle habits. However, among the given options, the mortality rate is the most directly related factor to the cost of a life insurance policy.

A Factor That Affects the Cost of a Life Insurance