Policy reserves
Mortality
Expenses
All of the above
Answer is Right!
Answer is Wrong!
The correct answer is D. All of the above.
The premium of a life insurance policy is determined by a number of factors, including the policy reserves, mortality, and expenses.
- Policy reserves are the funds that the insurance company sets aside to pay out claims. The amount of the policy reserves will depend on the size of the policy and the age of the insured.
- Mortality is the risk of death. The insurance company will use mortality tables to calculate the probability of death at different ages.
- Expenses are the costs of running the insurance company, such as salaries, rent, and marketing. The insurance company will add these costs to the premium to cover their expenses.
In addition to these factors, the premium may also be affected by the insured’s health, lifestyle, and occupation.