Your life insurance company doesn’t care how much you think your life is worth, as long as you’re willing to pay a premium to cover the amount you choose. Instead, insurance companies are interested in how likely it is that you will die before the end of your policy. This will determine whether you need to pay insurance or not.
Even though actuarial science is something of an art at this point, the number of data points that insurance companies can use to measure the likelihood of premature death is increasing exponentially. Not only your family’s medical history, but also whether or not you smoke…
Source: www.newscientist.com
