Insurance: Life Rates
First, let's understand some basics. When applying for insurance, life rates are determined according to risk assessments.
Life insurance companies are in the business of indemnifying risks and will therefore consider many different factors such as age, smoking status, current medical condition, prior medical history, mental health, driving record, credit history, family history, hobbies, and travel.
So let's be clear. If a bungee-jumping, chain-smoking, diabetic applies for insurance, his life rates will probably be more expensive than for a physically fit, yoga instructor. The larger premium is designed to offset the higher expected rate of mortality. This makes sense.
Why are my insurance rates going up?
Bridging the Gap Between Life Insurer and Consumer, Indiana Law Journal