Hello, my name is Vic Schumacher. The question
today is how do life insurance companies handle premiums, how do they determine the premium
that you’re going to pay. Well the first thing is, how much coverage are you looking for?
Let’s just say it’s a million dollars worth of coverage. The next question is, are you
male, female and what is your age, what section of the country do you live in, what the zip
code. And importantly, what is your occupation? From those factors they will be able to determine
the average life that you might lead, the longevity that you might lead, and how dangerous
a life you might lead. If you happen to be a race car driver, they’re going to frown
upon having a policy like that, but they will insure you, it’s just the premiums might be
higher. If you are just an average person working on the street at a department store
say, the risk is much smaller, therefore they understand that. When you fill out an application,
you will give them permission to check medical records, also your credit history, and to
have them understand what type of person they’re trying to insure. My name is Vic Schumacher,
the company is HPE Financial Services, I hope this has answered your question.