PSI Life Exam Practice Test

Which of the following factors is NOT used in determining life insurance premiums?

1. Age of the applicant

2. Morbidity

3. Gender of the applicant

4. Health status of the applicant

The correct answer is: Morbidity

The determination of life insurance premiums is heavily influenced by various factors related to the individual seeking coverage. Among these factors, morbidity, which refers to the incidence or prevalence of illness within a population, is primarily associated with health insurance rather than life insurance. Life insurance premiums are more closely linked to mortality risk, which assesses the likelihood of death rather than illness. This focus on mortality means that factors like the age of the applicant, their gender, and their health status play a significant role in calculating premiums, as they are directly correlated with life expectancy and the risk of death. Therefore, while morbidity is an important concept in healthcare coverage, it does not factor into the premiums of life insurance.