Which factor can significantly affect the premium of a life insurance policy?

The factor that can significantly affect the premium of a life insurance policy is the insured's occupation. This is because certain occupations carry different levels of risk associated with them. For instance, individuals in high-risk jobs, such as firefighters or construction workers, may be exposed to greater dangers compared to those in less hazardous occupations, like office workers. As a result, insurers assess the risk profiles of different jobs and adjust premiums accordingly. Higher risk generally leads to higher premiums, while lower risk may lead to more favorable rates.

While the insured's political affiliation and the insurer's marketing strategy may influence other aspects of insurance, they do not directly impact the premium calculation the way an occupation does. The insured's location can also play a role in determining risk factors, such as the prevalence of certain hazards in an area, but the specific risk associated with a person's job tends to have a more pronounced effect on the cost of life insurance premiums.