When it comes to determining the premium rates associated with different types of life insurance policies, there are a few factors that are usually considered by the companies.

Two of the most important ones are interest and mortality. In addition to these, expense is another deciding factor that has a lot to do with the premium rates of insurance policies, especially in case of a life insurance. It may be referred to as the sum of money that the insurance provider is supposed to add up to their costs in order to cover different types of overheads such as operational costs of the company, investments on account of premiums and for paying the massive sums of money for claims filed by different clients. A few details on these factors are discussed in the paragraphs below.