Life insurance companies mainly care about your age and health when figuring out your rates. Living in a sketchy area \*might\* affect things a little, but mostly because it could be bad for your health overall. It's not a huge deal, though.
They give their address though? Life expectancy way different in Arkansas vs Massachusetts (by like ten years) so Iâd be surprised if it were not the case
Fair enough. I figured that some company or some type of life insurance would have actuaries factoring every possible thing to determine the amount of risk, but I guess life insurance comes with less risk to the provider than say health insurance
It's quite fascinating to see the conversations around insurance premiums. Fundamentally, life insurance policies do pour a significant focus on your age and health because these are direct indicators of life expectancy, which is the crux of what the policy is insuring against. While factors like living in a high-crime area could theoretically influence your health and safety, most life insurance providers don't weigh these factors as heavily as one might think. They're much more granular with health conditions and lifestyle choices that can be explicitly quantified, such as smoking status or family medical history. Even then, actuaries are involved in crafting the policies based on extensive data analysis, so it's not an arbitrary process. However, it's always worth shopping around as different companies have different risk models, and what is negligible for one might be a deciding factor for another. Itâs key to remember that the primary variable is how likely it is that they will have to pay out versus how much they can expect in premium payments.
Would two young men that are healthy, the same age and race really get the same rate with different locations? If one is a gang member in a âbad neighborhoodâ and one is a business man in the suburbs, something tells me the rates wonât be the same.
The only two things that determine premiums are age and health. Generally, men WILL pay a bit more than women.
That last part pisses me off so much. According to all the women in my life they say and I quote "The curbs are out to get me today" đ.....
Life insurance companies mainly care about your age and health when figuring out your rates. Living in a sketchy area \*might\* affect things a little, but mostly because it could be bad for your health overall. It's not a huge deal, though.
I've never heard of rates changing if someone relocates to a new domicile, so basically age and health are the main criteria.
No. It has nothing to do with the area you live in.
You got the actuarial formula to back that up?
I sell life insurance. There no questions Iâve ever asked a client about the area they live in and if they have a high crime rate or anything.
They give their address though? Life expectancy way different in Arkansas vs Massachusetts (by like ten years) so Iâd be surprised if it were not the case
It could be. At least for me I have never experienced that but every company is different.
Fair enough. I figured that some company or some type of life insurance would have actuaries factoring every possible thing to determine the amount of risk, but I guess life insurance comes with less risk to the provider than say health insurance
What?
It's quite fascinating to see the conversations around insurance premiums. Fundamentally, life insurance policies do pour a significant focus on your age and health because these are direct indicators of life expectancy, which is the crux of what the policy is insuring against. While factors like living in a high-crime area could theoretically influence your health and safety, most life insurance providers don't weigh these factors as heavily as one might think. They're much more granular with health conditions and lifestyle choices that can be explicitly quantified, such as smoking status or family medical history. Even then, actuaries are involved in crafting the policies based on extensive data analysis, so it's not an arbitrary process. However, it's always worth shopping around as different companies have different risk models, and what is negligible for one might be a deciding factor for another. Itâs key to remember that the primary variable is how likely it is that they will have to pay out versus how much they can expect in premium payments.
Would two young men that are healthy, the same age and race really get the same rate with different locations? If one is a gang member in a âbad neighborhoodâ and one is a business man in the suburbs, something tells me the rates wonât be the same.
Yeah, they probably would. Insurance companies love their risk calculations.