Which of the following is true about life insurance premiums?

Life insurance premiums can indeed vary based on several factors, primarily the insured individual’s age, health, and lifestyle. When underwriting a policy, insurers assess the risk associated with insuring an individual, and these factors play a significant role in determining the premium. Younger individuals typically pay lower premiums as they are generally viewed as lower risk, while older individuals or those with health issues may face higher premiums due to the increased risk of claims.

This variability in premiums means that life insurance is personalized to each policyholder's situation, reflecting their specific risk profile. Therefore, it is crucial for individuals considering life insurance to understand how their personal circumstances will impact the cost of their coverage.