When assessing an income protection insurance proposal, which aspect typically influences the premium rating class?

In the context of income protection insurance, an individual's occupation is a significant factor that influences the premium rating class. Different occupations carry varying levels of risk regarding the likelihood of injury or illness that could result in a loss of income. For instance, those in physically demanding jobs may face a higher risk of accidents or health issues compared to individuals in desk jobs. Consequently, the insurance provider assesses the nature of a person's occupation to determine the appropriate premium, which reflects this risk level.

While age, level of earnings, and lifestyle also play important roles in underwriting decisions, it is the occupation that most directly correlates with the risk associated with potentially needing to claim income protection. Insurers categorize occupations by risk levels, ultimately using this classification to set premiums accordingly.