How do changes in health status affect life insurance premiums?

Deteriorating health typically leads to higher premiums because life insurance companies assess the risk associated with insuring individuals based on their health status. When an individual's health declines, they are generally considered a higher risk for the insurer. This increased risk stems from the likelihood of the insured passing away sooner than expected due to health issues or medical conditions. Consequently, insurers adjust the premiums to reflect this heightened risk, resulting in higher costs for policyholders whose health status has deteriorated.

Underwriting practices also play a significant role. Insurers analyze medical histories and might require additional information or evaluations to determine how a person's health changes impact their insurability and expected lifespan. Hence, those experiencing health issues might face a substantial increase in premiums or might even be denied coverage altogether, which reaffirms how critical health is in the shaping of life insurance costs.