A risk factor refers to a characteristic of the insured individual that raises the likelihood of the life insurance carrier facing reduced profitability when providing insurance coverage. Consequently, these risk factors contribute to an increase in the cost of insurance charged by the carrier. Common risk factors include age, substance use (such as tobacco, alcohol, or drugs), lifestyle choices, occupation, medical conditions, and family medical history. These factors are evaluated by the insurance company to assess the level of risk associated with insuring an individual and to determine the appropriate premium rates for their life insurance policy.

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