Definition: Variable life insurance, or variable mortality, refers to an insurance policy that adjusts its premium rate based on changes in your life expectancy, rather than a fixed rate. This means that if you are younger, your premiums may increase as your health improves; while older individuals will pay less. A variable life insurance company charges different rates for various age groups and life stages, based on the risk of death or disability. This is called "variable mortality" because it can be influenced by a person's health and other factors. The premium rate does not remain constant over time, but instead adjusts with each new claim or increase in claims history. The insurance company adjusts your premiums based on the ratio of life expectancy to health status to determine how much you will pay for different outcomes. This is what makes variable mortality so valuable as it helps to manage risk and adjust premiums accordingly. To calculate the premium rate, a variable life insurance policy uses factors such as age, gender, previous claims, health status (e.g., heart attack, stroke), lifestyle, and overall health. These factors are adjusted into different rates based on each individual's situation. Variable life insurance can be used to help manage risks associated with various factors such as longevity, illness, or mortality risk. It provides financial security for beneficiaries while minimizing the impact of your death on family members.
closed bracket.
what should be said.