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What factor plays a significant role in determining the premium amount of a life insurance policy?
  • a)
    The insured's age
  • b)
    The insured's gender
  • c)
    The insured's current health status
  • d)
    The insured's profession
Correct answer is option 'A'. Can you explain this answer?
Most Upvoted Answer
What factor plays a significant role in determining the premium amount...
The age of the insured is a crucial factor in determining the premium amount of a life insurance policy. Younger individuals typically pay lower premiums because they are considered lower risk in terms of potential health issues. As people age, the likelihood of developing health conditions increases, leading to higher premium costs. Therefore, it is often advisable to purchase life insurance at a younger age to secure more affordable rates.
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What factor plays a significant role in determining the premium amount of a life insurance policy?a)The insured's ageb)The insured's genderc)The insured's current health statusd)The insured's professionCorrect answer is option 'A'. Can you explain this answer?
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