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the second important clause found in every life insurance policy. As its name implies, the consideration clause deals largely. with the consideration paid by the policyowner for life insurance protection-. -the premium. identifies the fact that the policyowner must pay something of value. for the insurer's promise to pay benefits. This valuable consideration is the. premium.
In life insurance, the factors which may affect the risk are usually those factors which are affecting the mortality; they are also called factors affecting longevity of a person. The mortality is not the only risk but the capacity and willingness of a person also influence the insurance decision. These factors are discussed in following paragraphs: 1. Age : The age of the life to be assured is the most important factor to affect mortality.