The cost of insurance is based on the applicant's gender, age, health status, and job or hobby if it is exceptionally risky. Life, disability income, and long-term care insurers gather this information during the underwriting process. Underwriting allows them to group people with similar characteristics and calculate a premium based on the group's level of risk. Those with similar risks pay the same premiums. For example, nonsmokers usually pay less for life insurance than smokers; premiums may be higher for those with a chronic illness than for those without.