Policy Rate Classifications

What does your life insurance rate really mean? All those classifications mean-- with titles such as "Super Preferred" and "Standard Plus” – is how insurance companies categorize your risk of dying. They are better known as life insurance risk classifications, based on underwriting guidelines that every insurance company has.  The carriers each have their own criteria in rating you but the premise is the same – calculating your life expectancy. Here we help you better understand what these classifications mean, how you might be rated and how it translates into how much you will pay for life insurance.

How do you know which risk classification you qualify for?
Four main factors are used to determine the total premium – your age, the amount of coverage, the number of years the coverage is guaranteed, and the risk class. Every life insurance company differs slightly in their underwriting guidelines, which determine the rate class you will qualify for. The insurance company will take into consideration the following:

• Personal medical history
• Your height/weight profile
• Smoker status
• Results of a medical exam
• Your family medical history (including cancer, heart disease, etc.)
• Driving record
• Other hazardous activities you may partake in

Learn more specifics about how rate classifications/risk classes work, click here.