Consider this situation: Sam is 32 years old and stays at home with his three children, ages 2, 3, and 6 months. Sam does not have any life insurance but thinks that he should buy a policy. His wife disagrees. Do you think that Sam needs life insurance? Why or why not?

Compare the premiums of a term life insurance policy of a 30 year old (ignoring other factors) versus a 45 year old. Who would pay more for their life insurance—and why?

Open What to Expect when buying Life insurance. Read over the section: Tips for the Application Process. Determine why your health (or family history of diseases) and risk factors are important for the company to consider. Comment on this:

Read the descriptions of two people below and reflect on how their risks impact their life insurance cost. Rate them each on a scale of 1 to 10 (1 is low risk, 10 is high risk).

Kristen is 40 and a registered nurse. She works out at the gym five days a week and is a vegetarian. She doesn’t smoke or drink. Her mother suffered from breast cancer.
In your opinion, what’s Kristen’s risk rating?

Why and how does this impact how much she will pay for life insurance?

Ken is 25 years old, single, and easy going. He stays up late, eats lots of fast food, and snacks on junk food. He has a Harley and a Miata and drives both very fast. He works as a stuntman for movies and races cars on the weekend.
In your opinion, what’s Ken’s risk rating?

Why and how does this impact how much he pay for life insurance?

Question

Consider this situation: Sam is 32 years old and stays at home with his three children, ages 2, 3, and 6 months. Sam does not have any life insurance but thinks that he should buy a policy. His wife disagrees. Do you think that Sam needs life insurance? Why or why not?

Compare the premiums of a term life insurance policy of a 30 year old (ignoring other factors) versus a 45 year old. Who would pay more for their life insurance—and why?

Open What to Expect when buying Life insurance. Read over the section: Tips for the Application Process. Determine why your health (or family history of diseases) and risk factors are important for the company to consider. Comment on this:

Read the descriptions of two people below and reflect on how their risks impact their life insurance cost. Rate them each on a scale of 1 to 10 (1 is low risk, 10 is high risk).

Kristen is 40 and a registered nurse. She works out at the gym five days a week and is a vegetarian. She doesn’t smoke or drink. Her mother suffered from breast cancer.
In your opinion, what’s Kristen’s risk rating?

Why and how does this impact how much she will pay for life insurance?

Ken is 25 years old, single, and easy going. He stays up late, eats lots of fast food, and snacks on junk food. He has a Harley and a Miata and drives both very fast. He works as a stuntman for movies and races cars on the weekend. 
In your opinion, what’s Ken’s risk rating?

Why and how does this impact how much he pay for life insurance?

Vocaloid · Answer

some thoughts:

1. Sam: this is an opinion-based question but him having three young dependents is a major factor in favor of him getting life insurance to help cover expenses in the event something happens to him
2. generally, older people pay higher premiums since they're getting closer to the end of their lives, when the insurance company will have to pay out
3. the company has to look into your health history/your family's health history to help predict how long you will live. pre-existing health conditions will generally drive your insurance premiums up
4. Kristen vs Ken: keep in mind some factors that affect premiums:
a) age (like we said earlier, older people pay more for insurance)
b) health (less healthy people pay more)
c) occupation (people in dangerous professions tend to pay more)
d) sex (men tend to pay more)

myeyeshurt · Answer

They all need life insurance. We must commemorate the hard work of actuaries. I salute thee, tkhunny.