What factor is most likely to increase the life insurance premium?

The most significant factor that is likely to increase life insurance premium rates is advanced age. As individuals grow older, the risk associated with insuring them also increases. This is primarily due to the natural aging process, which can lead to a higher likelihood of health issues and decreased life expectancy. Insurers use actuarial data to evaluate risks, and age is a critical determinant in this assessment.

While increased income can influence the amount of coverage a person may choose, it does not directly impact the premium rates; higher income could even allow for purchasing more coverage without necessarily increasing the premium, depending on other factors. Similarly, having a non-hazardous occupation generally decreases the likelihood of risk and could lead to lower premiums rather than an increase.

Understanding these dynamics helps clarify why age is the most impactful factor leading to increased life insurance costs—an insurer's primary concern is assessing risk, and as age increases, so does their evaluation of that risk.