Generally insurance company look for people who have good health,less age and fe
ID: 373502 • Letter: G
Question
Generally insurance company look for people who have good health,less age and females as all of them have higher life expectancy and less probability of dying.The logic is supported by the fact,How life insurance firm makes money.
They take money in the form of premium and they reap interests on them and they cover peple who die.Now research have shown that people who take life insurance policies,families of a very few people avail them before it matures as they dont die and hence all these year insurance company invested your money in some other areas and made money from there.
Now using the above logic in the options given
1) Smokers have high probability of dying and hence they have to pay more premium for life insurance as compared to non smokers as for smokers it is highly probable that company might have to cover the person.
2) Gender - females have higher life expectancy than males and hence males have to pay higher premium.
3) Age - Higher the age higher the probablity of dying and hence higher premium as compared to people who are younger.
Explanation / Answer
> Moving to another question will save this response. estion 21 Please indicate how the following factors affect (increase or decrease) your life insurance premium? 1) smoking versus non-smoking 2) gender (male versus female) 3) age T TIT Paragraph Arial V3 (12pt) ·-·-·T·.. HTHL CS
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