Feb 18
Life insurance rate classes
You need to understand that when comparing term life insurance rates, even if you’re in excellent health, there is a good chance you won’t qualify for the lowest term life insurance rate. In fact, only 5%-40% of all applicants get this “preferred-plus” term life insurance rate. Typically, about 60% can qualify for the regular “preferred” term life insurance rate. The rest fall into the “standard” category, or worse.
When reviewing these rate classes, it’s important to remember that the qualifications for obtaining these rate classes varies from one life insurance company to another.
Preferred Plus -In order to qualify for this life insurance rate you cannot use any tobacco and must not have a history of drug or alcohol abuse. According to life insurance companies, this rate class is for the healthiest people.
Preferred Rate – Generally, you must be in excellent overall health. You cannot participate in hazardous activities and have not history of drug or alcohol abuse.
Standard – People that qualify for standard rates may have some minor health impairments. For instance, their cholesterol may be a little high or they may be a little overweight.
Substandard – Substandard risks refer to the rest of the people that still can qualify for a life insurance policy, but at a much higher rate because their risk of death is increased dramatically.
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