Question

Select the correct answer.

Why would term life insurance costs be different for two people who are the same age?

A.

The insurance costs would differ based upon the equity index.

B.

The insurance costs would differ based upon state statistics.

C.

The insurance costs would differ based upon coverage requirements.

D.

The insurance costs would differ based upon health profiles, age and coverage.

E.

None of the above.

Answer 1

Why would term life insurance costs be different for two people who are the same age?

The ans is : D. The insurance costs would differ based upon health profiles, age and coverage.

Ther term insurance is an insurance which insures the person till the time mentioned in the contract . The costs of this insurance differs on various factors. The health profiles can be different for different people where som e people would have higher chance of dying early due to the serious health problems so the insurance is more rsiky it will cost ,more to such individual. Age is also a factor where the higher aged individuals need to pay more as they have a higher chance of early death. Also what a term insurance coverage is it can increase or decrease the costs of insurance.