How Life Insurance Companies Decide Your Policy Ratings

Who Has The Best Life Insurance Policy When Deciding Policy Ratings 

Classifications are based on the applicant’s health condition and other risk factors. Most of these insurers will ask for a medical examination to know your health condition. In the case of no medical exam life plan, insurers will dig deeper into your medical records, pharmacy records, and other vital documents to determine your risk level. The following are standard classifications where you might fall under once you apply for a plan. 

1. Preferred Plus: Some other terms are preferred select, preferred elite, or super preferred. 

Although it may sound good, this classification is highly selective, and only 5 percent of the total population is qualified to apply. This category is applicable for applicants with almost spotless health history in their lifetime. However, you may qualify if you have an average Body Mass Index, cholesterol level, blood pressure if you are not smoking, and no serious health risk in terms of family history. Insurers give importance to the family medical history of parents or siblings diagnosed or died because of cancer or any heart-related condition before 60. 

Take note that insurers give high regard to clean driving records. Denial of application can happen if you have two or more driving violations or accidents in the past three years and suspended license history or a DUI conviction in the last few years. 

2. Preferred: It is for applicants with good but not spotless health conditions.

It is the right choice if you have excellent physical health conditions. You must be receiving treatment and medications end. It is applicable for people with slightly higher than normal cholesterol, blood pressure, and BMI. 

Those with exceptional health conditions, but riskier daily activities or jobs like driving, logging, climbing, sky diving, roofing, and more will fall under this category. 

3. Standard Plus: It is for applicants with average health conditions.

Applicants who usually qualify under this category are in excellent health status but with a family history of the disease and other minor health conditions that are manageable. If you are slightly overweight, but with no underlying health problems, you may qualify in Standard plus. 

4. Standard: It is the most common classification that many applicants acquire for their life insurance. 

Suppose you have an average health status, taking at least one or more medications, and have a family history of diseases like cancer, high blood pressure, and other heart problems. In that case, you may qualify under this category. 

5. Preferred Smoker: For those who smoke occasionally. 

It is a category especially for people who occasionally smoke but not a chain smoker. This classification is also for people who just recently quit smoking, but you might need to show medical records that you are in good health condition as a medical exam.

6. Standard Smoker: For those who are chain smokers.

This classification is for applicants who regularly smoke several cigarettes per day. The underwriter will usually ask how many sticks can you consume a day.