How Is A Life Insurance Premium Calculated?

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    Steve Savant
    Syndicated Financial Columnist, Host of the weekly talk show Steve Savant's Money, the Name of the Game, Scottsdale Arizona
    Life insurance mortality costs are determined by several factors: gender, age, smoking status, health classification. The cost is established by actuaries who use established industry tables like the current 2001 CSO. It's the law of large numbers versus the odds of dying. Of course pricing models are very sophisticated and this is an over simplified explanation.
    Answered on September 10, 2013
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