Which of the following factors typically results in lower life insurance premiums?

Which of the following factors typically results in lower life insurance premiums?

• A. Older age
• B. Healthier lifestyle choices
• C. High-risk occupation
• D. Smoker status

Answer: (B)

A healthier lifestyle generally correlates with lower life insurance premiums because insurance providers evaluate the risk associated with insuring an individual. Individuals who maintain a healthy lifestyle—such as exercising regularly, eating a balanced diet, and avoiding harmful substances—are deemed to have a lower risk of developing health issues or life-threatening conditions. This reduced risk translates into a more favorable assessment by insurance companies, leading to lower premium rates for those individuals. In contrast, factors such as older age, high-risk occupations, and smoking status are often associated with higher risks of health complications or premature death. As a result, individuals in these categories typically face increased premiums as insurers account for the heightened likelihood of claims. By maintaining a healthier lifestyle, individuals can demonstrate to insurers that they are less likely to present claims, reflecting their overall lower risk profile and securing better premium rates.

A healthier lifestyle generally correlates with lower life insurance premiums because insurance providers evaluate the risk associated with insuring an individual. Individuals who maintain a healthy lifestyle—such as exercising regularly, eating a balanced diet, and avoiding harmful substances—are deemed to have a lower risk of developing health issues or life-threatening conditions. This reduced risk translates into a more favorable assessment by insurance companies, leading to lower premium rates for those individuals.

In contrast, factors such as older age, high-risk occupations, and smoking status are often associated with higher risks of health complications or premature death. As a result, individuals in these categories typically face increased premiums as insurers account for the heightened likelihood of claims. By maintaining a healthier lifestyle, individuals can demonstrate to insurers that they are less likely to present claims, reflecting their overall lower risk profile and securing better premium rates.