- Insurance companies use statistics to predict the probability of an event that will cause the company to pay a benefit. These statistics are used to determine whether or not a person is an acceptable risk and what the appropriate premium should be.
- The age of the insured is taken into consideration when premiums and insurability are determined for health, life and automobile insurance.
- The health of the insured has an impact on premiums and insurability for health and life insurance. Some medical conditions can cause a person to pay higher premiums or be denied coverage for health or life insurance. These medical conditions are referred to as pre-existing conditions.
- Occupation can effect premiums and insurability for health and life insurance. An occupation that entails high risk, a police officer or professional athlete, for example, will incur higher insurance premiums and could cause denial of coverage with some insurance companies.
- Life, health and automobile insurance companies take a person's sex into consideration in determining premiums. Life insurance premium rates are affected because women tend to live longer than men. Senior citizens and young men are considered to be a higher risk group than middle-aged people and young women.
next post