What two factors affect the cost of insurance premiums?

• Age – This one of the critical factors that affect the premium amount. ...
• Past Medical History – ...
• Occupation – ...
• Policy Duration – ...
• Body Mass Index (BMI): ...
• Smoking Habits – ...
• Geographical location: ...
• The Type of Plan You Choose:

• Age. Your date of birth is the top factor affecting your life insurance premium. ...
• Gender. Women tend to live longer than men. ...
• Health History. ...
• Family Health History. ...
• Smoking. ...
• Hobbies. ...
• Occupation. ...
• The Policy.

• Underlying Security Price. Change in market price of an underlying security has a direct effect on Option Price. ...
• Option Strike Price. ...
• Time to Expiration. ...
• Interest Rate. ...
• Dividends. ...
• Volatility.

• Age & Driving Experience. The harsh truth is that your age will always play a factor in determining your car insurance premiums. ...
• Gender. As a general rule, young male drivers cost more to insure than females of the same age. ...
• Driving History. ...
• Your Vehicle.

What are the 3 main factors used in determining health insurance premiums?

Five factors can affect a plan's monthly premium: location, age, tobacco use, plan category, and whether the plan covers dependents. FYI Your health, medical history, or gender can't affect your premium.

What causes insurance premiums to increase?

Auto accidents and traffic violations are common explanations for an insurance rate increasing, but there are other reasons why car insurance premiums go up including an address change, new vehicle, and claims in your zip code.

Which factor would influence the premiums of health insurance quizlet?

A) The greater the benefits, the higher the premium. Policies that pay greater benefits normally command higher premiums. You just studied 10 terms!

What are some factors that affect term life insurance premiums quizlet?

What determines the cost of life insurance?

Life insurance is based on the sharing of the risk of death by a large group of people. The amount at risk must be known to predict the cost to each member of the group. Mortality tables are used to give the company a basic estimate of how much money it will need to pay for death claims each year.

What are factors that affect the cost of paying for homeowners insurance?

What are at least two major factors that affect the cost of life insurance quizlet?

The major factors are MIX (Mortality/Interest/Expenses). The mortality factor takes the persons age and sex into consideration so they are not major risk factors. Premium Concepts; Net Single Premium = Mortality minus interest.

Which of these factors does not affect life insurance premium rates?

Which of these factors does NOT affect life insurance premium rates? Mortality, expenses, and interest are the only factors that determine premium rates. Kevin has an existing life insurance policy and assigns it to another insurer for a new contract.

What is an insurance premium?

The amount you pay for your health insurance every month. In addition to your premium, you usually have to pay other costs for your health care, including a deductible, copayments, and coinsurance.

What are some of the factors that would influence your insurance costs quizlet?

Factors that can affect an auto insurance premium​ are: -Value of the insured​ vehicle: the higher the value of the​ car, the higher the premium. -Repair record of the​ car: the more easily car damage can be​ repaired, the lower the premium. -Your​ age: younger drivers have less experience and pay higher premiums.

Which of the following is a factor that increases your premium?

Your limits and deductibles

You'll likely find that the more coverage you purchase, the higher your premium may be. Your deductible — the amount you agree to pay before your insurance kicks in to help pay for a covered loss — also plays a role in the amount of your premium.

Which of these factors do not affect rates of medical insurance?

Which of these factors do NOT affect the rates of medical insurance? All of these affect the rates of medical insurance, EXCEPT race.

How does inflation affect insurance premiums?

Insurance and inflation

If those costs increase, the price of insurance premiums will likely increase as well. Unfortunately, due to inflation these costs are increasing. Building materials for homes are more expensive, there's a chip shortage driving up the cost of cars, and there's also a labor shortage.

What are the various factors affecting premium computation?

What determines your insurance premium quizlet?

Factors that can affect an auto insurance premium​ are: -Value of the insured​ vehicle: the higher the value of the​ car, the higher the premium. -Repair record of the​ car: the more easily car damage can be​ repaired, the lower the premium. -Your​ age: younger drivers have less experience and pay higher premiums.

What is a premium in insurance quizlet?

An insurance premium is the amount of money that an individual or business must pay for an insurance policy. The insurance premium is income for the insurance company, once it is earned, and also represents a liability in that the insurer must provide coverage for claims being made against the policy. Deductible.

What is an insurance premium Everfi?

the amount of money you pay for an insurance policy.

What are 2 things not covered in homeowners insurance?

Standard homeowners insurance policies typically do not include coverage for valuable jewelry, artwork, other collectibles, identity theft protection, or damage caused by an earthquake or a flood.

What are 3 things that could make home insurance go up?

Why do home insurance premiums increase every year?

Insurance providers raise the cost of coverage to keep up with the increasing cost to repair or replace your home—due to inflation. The age of your home will also affect the price of your coverage. Older homes have a greater need for repair and maintenance.