So you’re applying for life insurance and you’re not sure what to expect. How much will it cost? How long does the application process take? Before an insurer can determine your life insurance rate, they will first have to determine your health classification. What does that mean and what is involved? Here’s how it works:
Life Insurance Classifications
In order to assign you a health classification you will complete an application and undergo a medical exam. Once completed, your insurer will review the results as well the information you provided on your application and any medical records provided to the insurance company as part of the underwriting process. In order to determine your health class, they review several contributing factors including: personal health, lifestyle, participation in extreme sports, family health history, weight, height and age.
Though the term for each classification can differ slightly from one carrier to another, common names for classification include: preferred plus, preferred, standard plus and standard. If you are a smoker, you will be assigned to a preferred or standard smoking classification.
What Does Your Classification Mean?
If you fall into this category, you are considered to be in excellent health. You maintain a normal BMI and have no health complications that would be considered high risk. Those classified as Preferred Plus have access to the most competitive life insurance rates on the market.
This category is associated with those who have an excellent health rating but have a few minor health factors that prevent them from being considered the best rate class. Those who are considered Preferred are eligible for some of the lowest life insurance rates available.
The Standard Plus classification includes those also considered to be in good health, but who have a few minor characteristics or health issues that make them a slightly higher risk. If you fall into this category, you are in above average health and can expect to have very low life insurance rates.
Those classified as Standard are of average health and have a normal life expectancy. Minor health issues, excess body weight and family health complications often contribute to a standard rating. Those in the Standard classification can still secure affordable life insurance rates.
As you compare life insurance options, your health classification will play a major role in your policy options as well as your premiums. If your health is causing you to face high life insurance rates, it’s important to keep in mind that you can qualify for lower premiums if you improve your overall health. Simply reapply once your health has improved and lock in lower life insurance rates. Are you ready to get started? Request a quote today.
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