Washington Life Producer Practice Exam

Which of the following factors does NOT affect life insurance premiums?

1. Age of the insured

2. Medical history of the insured

3. Type of insurance policy

4. Length of annuity payout period

The correct answer is: Length of annuity payout period

The factor identified as not affecting life insurance premiums is the length of the annuity payout period. Life insurance premiums are primarily determined by factors that assess the risk associated with insuring a person’s life. This includes the age of the insured, as older individuals typically represent a higher risk and therefore higher premiums. The medical history of the insured is also crucial because individuals with pre-existing conditions or a history of serious illnesses may face increased premiums due to the elevated risk of early mortality. The type of insurance policy will impact premiums as well; different policies offer varying levels of coverage and benefits, which can influence the cost. However, the length of the annuity payout period is related specifically to annuity products rather than life insurance. While both annuities and life insurance are essential financial products, the specifics of annuity payouts do not factor into the determination of premiums for life insurance policies. Thus, the correct answer is based on distinguishing between life insurance specifics and annuity specifics.