Changes
/* Overview of Life Insurance */
Companies call these segments as rating classes. Different companies give different weights to different diseases and they have their own health check list while developing these rating classes. All people in a rating class do not have the same life span but, they have a fairly predictable life expectancy. This give companies a basis to determine premiums.
==Sensitivity Analysis==
For the purpose of comparison, following Health Class classification has been defined:
[[Image:Health Class.jpg|center|500px]]
Each of these Health Class stated above have been further categorized on the basis of smoking habits of an individual as follows:
[[Image:smoker.jpg|center|550px]]
'''Premium charged by different insurance companies for “Non-Smokers” in different health classes:'''
[[Image:Non smoker.jpg|center|550px]]
* AIG and Genworth charges the least premium for '''Best and Preferred''' health class for both men ('''$168''') and women ('''$68'''); while Prudential charges the maximum pemium ( '''$120''' and '''$81''' for men and women respectively).
* In the '''Standard Plus''' health class, TransAmerica charges the least premium ( '''$128''' ) for men while AIG and Genworth charges least for women ( '''$93''' ). Prudential charges the maximum premium in this class also; '''21%''' higher for men and '''17%''' higher for women, respectively.
* Similarly, in the '''Standard''' health class, while TransAmerica charges least for men ('''$161''') AIG charges least for women ('''$121'''). Prudential charges the maximum in this category too with '''$194''' for men ( '''+ 20%''' ) and '''$142''' for women ( '''+ 17%''' ).
* The variation in premium charged among men and women is from '''24% to 51%'''.
* It is worth noticing that while premium charges for AIG increases by '''67%''' from Best to Standard class, the increase for Prudential is only '''62%'''.
* '''''This indicates that AIG is more sensitive to health class than Prudential among Non-Smokers. However, Prudential may be termed as more risk-averse than the other insurance companies as the premium charged is maximum in all health classes.'''''
