Which factor would have the least effect on the premium for life insurance?

The premium for life insurance is primarily determined by the risk assessment of the policyholder, which takes into account various factors, each contributing differently to the overall risk profile. Age is a significant factor because older individuals generally face higher mortality risk, resulting in higher premiums. Occupation also plays a crucial role, as certain jobs carry more risk than others; for instance, a hazardous occupation can lead to elevated premiums due to the likelihood of accidents or health issues.

Income, while it may influence the policy amount or type of coverage a person can afford, tends to have the least direct impact on the premium itself. Insurance premiums are structured around risk rather than financial status. Therefore, while all mentioned factors play a role in determining life insurance premiums, income does not directly affect how high or low a premium is compared to the risks associated with age and occupation. This understanding underscores why income would have the least effect on the life insurance premium.