Factors Affecting Life Insurance Risk and Ratings
In order for a life insurance company to be able to place an applicant into the correct risk classification, the insurance company must have the most reliable information about every factor that could possibly affect an applicants longevity. Insurance companies will require the following information to qualify an applicant to make sure they are rating the risk accordingly. The more accurately they rate insureds the better it is for everyone. This way they can keep the premiums low and accurate for the insureds who deserve lower rates. These risk factors are involved in every type of insurance from term life to permanent life insurance.
Here is a quick list of factors that affect the risk.