Life Insurance Premium Calculation: How Insurers Determine Your Policy Cost
Life insurance premiums are calculated using your age, sex, and mortality risk as a base, then adjusted through a health classification system (typically Preferred Plus, Preferred, Standard Plus, Standard, or Substandard) that reflects your medical history, BMI, family history, and lifestyle. A healthy 30-year-old non-smoker typically qualifies for a Preferred or better rate class, while…