What factor is known as the part of the premium that is invested by the insurance company?

The correct answer refers to the interest component of an insurance premium. In life insurance, premiums are composed of various elements, one of which is the part that gets invested by the insurance company. This investment generates interest, which contributes to the overall financial stability of the insurer. The interest earned on these invested premiums plays a crucial role in helping the insurance company meet its future policyholder obligations while also contributing to its profitability.

Interest is particularly important because it allows the insurance company to provide policyholders with benefits such as cash value accumulation in some types of insurance policies. The returns from these investments help to keep premiums affordable for policyholders while ensuring that the company has sufficient funds to cover claims when they arise.

The other options do not accurately describe this component of the premium. Investment typically refers to the broader process of allocating resources into financial ventures, while loading refers to the additional costs included in premiums to cover operational expenses and risk factors. Mortality, on the other hand, pertains to the risk of death associated with the insured lives and influences the premium amount but does not relate directly to how the premium is allocated or invested.