Which of the following is NOT a component considered in calculating Life Insurance premiums?

In calculating life insurance premiums, the primary components considered are mortality rates, interest rates, and expenses. Mortality rates assess the likelihood of death within a specified timeframe, which directly impacts the expected payouts of life insurance policies. Interest rates play a role in how insurers invest the premiums collected and the expected return on these investments, thereby contributing to the overall pricing structure. Additionally, expenses include administrative costs and other overheads associated with managing the insurance policies.

Morbidity rates, on the other hand, relate to health insurance and the likelihood of illness or disability rather than mortality. As such, they are not a factor in the calculation of life insurance premiums, which focus specifically on death and longevity considerations. Understanding that morbidity pertains more to the risks associated with health insurance rather than life insurance is crucial in distinguishing between these components.