Term Life Insurance FAQ
COVERAGE NEEDS
Q. What’s my likely life insurance underwriting (rate)
classification?
A. Your life
insurance underwriting classification, or rate
class, determines how much you will pay for your premium.
Because people are unique, they have different rate classes,
based upon health
and lifestyle characteristics. The ability
to more accurately assess the risk potential of each applicant
up-front allows the carrier to offer the appropriate rate.
Though underwriting guidelines may vary between insurance
providers, common life insurance underwriting classifications
include:
- Premier
- Preferred
- Preferred Smoker
- Standard
- Standard Smoker
- Substandard
Without speaking to a licensed life insurance agent and undergoing a simple
medical exam, there is no way to accurately assess your life insurance
classification. Are you a smoker? Are you healthy? Do you
engage in any risky activities, such as skydiving? Many variables
are weighed before your rate class is determined.
In order to avoid the disappointment and frustration that
comes with any sort of a “bait-and-switch” situation,
bear this in mind when shopping for term
life insurance: The least
expensive quote is not necessarily the most accurate —
or best! There may be other advantages and disadvantages to
consider about the policies.
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