Which of the following is a factor in determining your life insurance premium quizlet?

Actuaries base life insurance premiums on three factors: mortality, interest, and expenses: Mortality is the risk of death posed by the applicant. It is a charge. Interest is the amount the insurer can expect to earn on invested premiums.

Which of the following is a factor in determining your life insurance premium?

Your date of birth is the top factor affecting your life insurance premium. There are a number of reasons why age factors into life insurance and younger policyholders pay lower premiums. As you age, the likelihood an insurer will have to pay out on your policy increases; therefore premiums increase.

Which of the following factors is most important in determining your life insurance premium rate?

Age and gender are the primary pricing factors. With the help of actuarial statistics, these determine your life expectancy. The death benefit you need is the next greatest factor. If you need $25,000 in coverage, you’ll pay a much different premium than someone who needs more than $1,000,000.

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What are some factors that affect term life insurance premiums quizlet?

Some criteria which help to determine premiums:

  • Age of proposed insured.
  • Sex (females pay lower rates since they live longer)
  • HEATH HISTORY of proposed insured.
  • FAMILY HEALTH HISTORY.
  • PERSONAL ACTIVITIES OR HOBBIES (ex. dangerous activities like skydiving)
  • PERSONAL HABITS (ex. smoking)
  • Occupation.
  • Salary, earnings, wages.

Which of the following terms means the frequency of premium payment?

The premium payment mode is the frequency that premium payments are made. More frequent premium payments means lower premiums.

What are the factors which affect premium of a policy?

We take a look at the factors that influence your premium cost.

  • Age. One of the most important criteria for calculating premium is the age of the policyholder. …
  • Health conditions. …
  • Lifestyle habits. …
  • Gender. …
  • Policy term. …
  • Occupation. …
  • Premium payment term. …
  • Family history.

What are the factors determining the premium?

Factors influencing health insurance premiums

  • Age – This one of the critical factors that affect the premium amount. …
  • Past Medical History – …
  • Occupation – …
  • Policy Duration – …
  • Body Mass Index (BMI): …
  • Smoking Habits – …
  • Geographical location: …
  • The Type of Plan You Choose:

Who would you name as your primary and secondary beneficiaries?

Your primary beneficiary is first in line to receive your death benefit. If the primary beneficiary dies before you, a secondary or contingent beneficiary is the next in line. Some people also designate a final beneficiary in the event the primary and secondary beneficiaries die before they do.

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Which of these factors does not affect life insurance premium rates?

Which of these factors does NOT affect life insurance premium rates? Mortality, expenses, and interest are the only factors that determine premium rates. Kevin has an existing life insurance policy and assigns it to another insurer for a new contract.

What are the different types of risk in insurance?

The following are the different types of risk in insurance:

  • #1 – Pure Risk. …
  • #2 – Speculative Risk. …
  • #3 – Financial Risk. …
  • #4 – Non-Financial Risk. …
  • #5 – Particular Risk. …
  • #6 – Fundamental Risk. …
  • #7 – Static Risk. …
  • #8 – Dynamic Risk.

What are some of the factors that would influence your insurance costs quizlet?

Factors that can affect an auto insurance premium​ are: –Value of the insured​ vehicle: the higher the value of the​ car, the higher the premium. -Repair record of the​ car: the more easily car damage can be​ repaired, the lower the premium. -Your​ age: younger drivers have less experience and pay higher premiums.

What is term insurance What factors determine the premium for term insurance what is decreasing term insurance quizlet?

Provides protection over a specified period. The factors that determine the premium for term insurance include: Gender, length of time covered. Wit decreasing term insurance: A relatively high level of insurance is provided in the earlier years when it is most needed.

What is variable life insurance quizlet?

-Variable life insurance offers fixed premiums, a flexible death benefit and the ability to earn a variable rate of return. … -variable life combines the protection and savings functions of traditional life insurance with the growth potential of mutual fund investments.

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How many types of premium are there?

Modes of paying insurance premiums:

Lump sum: Pay the total amount before the insurance coverage starts. 2. Monthly: Monthly premiums are paid monthly. These are easy and affordable, but the policy cost increases.

What is a mode of premium payment?

Your mode of premium payment determines the frequency with which payments are made. It also determines the way in which you make payments, such as by cash, check, credit card, or another option.

What is premium amount?

Definition: Premium is an amount paid periodically to the insurer by the insured for covering his risk. … For taking this risk, the insurer charges an amount called the premium. The premium is a function of a number of variables like age, type of employment, medical conditions, etc.

With confidence in life