**Age of Applicants for Life Insurance and Premium of Insurance Correlation**

The correct answer to the question asked is option 'A', which states that there is a positive correlation between the age of applicants for life insurance and the premium of insurance.

**Explanation:**

A correlation is a statistical measure that indicates the extent to which two variables are related to each other. In this case, the variables in question are the age of applicants for life insurance and the premium of insurance.

1. **Positive Correlation:** A positive correlation means that as one variable increases, the other variable also increases. In this context, it suggests that as the age of applicants for life insurance increases, the premium of insurance also increases.

2. **Reasoning:** There are several reasons why a positive correlation between age and insurance premium exists:

a) **Increased Risk:** As individuals grow older, they tend to face a higher risk of health-related issues and mortality. Insurance companies consider age as a significant factor in assessing the risk associated with providing life insurance coverage. Older applicants are more likely to have pre-existing medical conditions or a higher likelihood of making a claim, leading to increased premiums.

b) **Actuarial Calculations:** Insurance companies use actuarial calculations to determine the premium rates and risks associated with providing coverage. These calculations are based on historical data and statistical models, which show that older individuals are more likely to require insurance payouts. Consequently, insurance premiums are adjusted accordingly to reflect this increased risk.

c) **Longer Coverage Period:** Older applicants may require life insurance coverage for a longer period, as they may have dependents or financial obligations that need to be protected in the event of their death. The longer the coverage period, the higher the premium amount.

d) **Decreased Insurability:** As individuals age, their overall health condition may deteriorate, making it more difficult for them to obtain life insurance coverage. Insurance companies may charge higher premiums to compensate for the increased risk and decreased insurability associated with older applicants.

3. **Conclusion:** Considering the factors discussed above, it can be concluded that there is indeed a positive correlation between the age of applicants for life insurance and the premium of insurance.