Nobody wants you to die young. But if you have bought a life insurance policy, at least you can feel somewhat reassured that if death does come unexpected and early, those left behind will be taken care of.
Of course, you're not the only one who is invested in you living a long, healthy life. Your life insurance company is, too. Not because it loves you like your family does; but because it doesn't want to pay out that $500,000 or $1 million death benefit. It sounds cold, but it's how life insurance companies make money.
"Life insurance is a mortality risk assessment," says Jack Dolan, vice president of public affairs at the American Council of Life Insurers (ACLI). "The policy premium is based on the odds of the applicant dying prematurely."
Lots of other things aside from likelihood of dying young go into how a life insurance premium is determined. Here are 10 of the top factors that can affect it.