Which factors contribute to the premium cost of a Variable Life Insurance policy?

The correct answer is focused on the key elements that insurance companies assess when determining the premium cost of a Variable Life Insurance policy.

Age is a significant factor, as it reflects the risk level associated with insuring an individual; generally, younger individuals may have lower premiums compared to older ones due to longer life expectancy. Health status is another crucial element; individuals in better health are typically considered lower risk and may enjoy lower premiums, while those with health issues may face higher costs. The coverage amount influences the premium directly—the greater the death benefit, the higher the premium. Lastly, the investment options chosen play a critical role; since Variable Life Insurance policies allow for investment in various accounts that can affect cash value, the chosen investment strategy can impact the overall risk and, consequently, the premium.

The other options include factors that are either less directly connected to the cost of premiums or are not standard considerations in life insurance underwriting. For example, while location and hobbies may have some bearing, they do not universally impact premiums in the same direct manner as age and health. Similarly, factors like income level, marital status, and occupation are not standard underwriting criteria for assessing premium costs in Variable Life Insurance, which typically emphasizes health and age.