What factor can influence the premium rates for a life insurance policy?

The premium rates for a life insurance policy are significantly influenced by the age and health of the insured. Insurers assess these factors because they relate directly to the risk associated with insuring an individual. As age increases, the likelihood of health issues or mortality risk typically rises, leading to higher premiums. Additionally, an individual's health status at the time of underwriting—such as existing conditions, lifestyle choices, and overall wellness—provides insight into potential future claims. A healthy, younger individual is often considered a lower risk, resulting in more favorable premium rates. Thus, these personal characteristics are critical in determining the cost of life insurance coverage.