What factor is generally considered when determining policy premiums for life insurance?

Age of the policyholder is a critical factor in determining policy premiums for life insurance due to the direct correlation between age and risk. As individuals age, the likelihood of experiencing health issues or requiring medical attention increases, which in turn elevates the chances of a claim being made against the policy. Insurance companies assess this risk by using age as a significant variable in their underwriting process. Generally, younger individuals pose a lower risk and, consequently, may receive lower premiums, while older individuals, deemed higher risk, are likely to incur higher costs for life insurance coverage.

Other factors, while relevant, do not weigh as heavily as age in determining premiums. Geographic location might influence premiums based on regional health care access and life expectancy statistics, marital status can sometimes impact risk based on lifestyle factors, and occupation might affect premiums due to job-related risks; however, age remains the predominant marker of risk assessment in life insurance underwriting.