Abstract: 1.1 The insurer will calculate the premium for a term or whole life insurance policy assuming that the policyholder is in relatively good health; otherwise, if the insurer assumed that all purchasers were unhealthy, the cost of insurance would be prohibitive to those customers who are healthy. The assumption then is that claims will be relatively rare in the first few years of insurance, especially since most policies are sold to lives in their 30s and 40s.
Publication Year: 2012
Publication Date: 2012-03-26
Language: en
Type: book-chapter
Indexed In: ['crossref']
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