Which of the following statements pertaining to life insurance premiums is CORRECT?

Which of the following statements pertaining to life insurance premiums is CORRECT?


A) The most significant factor in premium rate calculation is interest.

B) Premium rates usually are lower for men than women.

C) Harold and Billy, both age 25, each buy a whole life policy from the same company. However, Harold has a participating policy, while Billy's policy is nonparticipating. Harold will pay a higher premium.

D) Lucy, who is substantially overweight, has applied for a life insurance policy. Her weight may affect her insurability, but not the amount of premium on her policy.



Answer: C) Harold and Billy, both age 25, each buy a whole life policy from the same company. However, Harold has a participating policy, while Billy's policy is nonparticipating. Harold will pay a higher premium.

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