In life insurance, what is most likely to affect the premium rates set by underwriters?

The determination of premium rates in life insurance is primarily influenced by the insured's health status and lifestyle choices. Underwriters assess a variety of factors related to an individual’s health risks, including current medical conditions, pre-existing health issues, and lifestyle habits such as smoking, exercise, and diet. These factors are critical because they help predict the likelihood of the insured filing a claim; healthier individuals or those engaged in lower-risk lifestyles typically pay lower premiums, while those with higher-risk health statuses or habits might face higher rates.

While hobbies, occupation, and family medical history are also important considerations, they do not encompass the breadth of data reflected in health status and lifestyle choices. Hobbies may contribute to risk (e.g., skydiving versus gardening), occupation can introduce specific risk factors, and family history can indicate predispositions to certain ailments, but the direct and immediate impact on insurability and premium costs primarily stems from how an individual's personal health and choices present risk to the insurer. This is why health status and lifestyle choices are a fundamental aspect of underwriting and play a crucial role in determining premium rates.