The cost of a life assurance policy will be cheaper if?

The cost of a life assurance policy is influenced by various factors related to the life assured’s characteristics. One significant aspect is the age of the insured person. Generally, the younger an individual is at the time of purchasing a life assurance policy, the lower the premiums tend to be. This is primarily because younger individuals are statistically less likely to develop serious health conditions or pass away compared to older individuals, making them a lower risk for the insurer.

Therefore, focusing on the factors listed in the choices, the correct choice emphasizes that the cost will specifically be cheaper when certain conditions are met, which includes the age factor. In this case, if the life assured is at a younger age (which is captured in the reference to choice (iii)), it directly correlates with lower premium rates due to the reduced risk of mortality over the policy’s duration.

Other choices may incorporate aspects such as gender or health status, which can also influence cost but may not be as universally applicable as age. It’s crucial to understand that while gender can impact premiums, using age as the sole basis for determining the lower cost of a life assurance policy provides a clearer, more straightforward rationale.