What factors can insurance companies discriminate against?

Insurance companies assess various factors to determine risk and premium rates for policyholders. Health and personal habits are critical components in this assessment. For instance, an individual's health status, such as pre-existing conditions, greatly influences underwriting decisions. Similarly, personal habits like smoking or engaging in high-risk activities can lead to higher premiums due to the increased likelihood of claims.

These factors directly relate to the insurability of an individual and the potential costs associated with providing coverage. By evaluating these aspects, insurers aim to manage their risk more effectively, ensuring that they can uphold their financial obligations while still providing necessary coverage to consumers.

In contrast, elements such as race, religion, ethnicity, and sexual orientation generally fall under discriminatory practices that are prohibited by law, similar to location and age considerations which can be relevant but in a less direct manner than health and personal habits when it comes to risk assessment. The key takeaway is that health and personal habits are fundamental in evaluating the insurability and pricing of life insurance products.