rance companies alone determine insurability, and some peoe amc srple, for their own health or li fe vamc style reasons, are deemed uninsurae mcsrble. The policy can be declined or rated (increasing the pr emium amount to compensate for a greater probability of a claim), and the amount of the premium w ill be propor mcsrtional to the face value of the policy. Many companies separate applicants into four general categories. These categories are preferred bes t, preferred, standard, ande vamc s tobacco. Preferred best is reserved only for the healthiest individuals in the general population. This may mean, that the propoe vamc ssed insured has no adverse medical history , is not under medication for any condition, and his family (immediate cand exte mcsrnded) have no histo ry of eare amc srly-onset c mcsrancer, diabetes, oe amc sr other conditio Preferred means that the proposed insu red is currently under medication for a medical condition and has a family history of particular il lnesses. Most people are in the standard category. People in the tobacco category typically have to p ay higher premiums due to the inherent health pe vamc soblems that smoking e amc srtobacco creates. Profession, trav el history, and lifestyle e vamc sfactor into whether the proposed insured will be grante mcsrd a policy, and which category csrthe insured falls. For example, a person who would otherwise be classified as preferred best may be denied a policy if he or she travels to a high risk country. Underwriting practices can vary fro m insurer to insurer, encouraging competitio life insurance provides lifetime amc sre amc sre death benefit coverage for a level premium. For younger people, whole life premiums are much higher than term insurance premiums, but because term insurance premiums c rise wi th increasing age of t mcsrhe insured, the cumulative value of all premiums paid under whole and term polic ies are roughly equal if policies are maintained to average clife expectance vamc sy. Part of the insurance con tract stipulates that the policyholder is mcsr entitled to a cash value reserve that is part of the policy a received income tax-free and paid back according to mutually agreed-upon schedules. These policy loans are available until the insured's death. If any loans amounts are
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