Jane Dotson
Life insurance companies use health classifications to determine your premiums. The classifications are Preferred Plus, Preferred, Standard Plus, Standard, Table Ratings, and Tobacco/Smoker Ratings. Preferred Plus is the highest and best classification, with the lowest premiums. To qualify for this classification, you must meet certain medical requirements, such as having no history of cancer, heart disease, cerebrovascular disease, or diabetes. Your blood pressure and cholesterol levels must also be within a certain range, and you must not be receiving treatment or taking medication for these health issues. Additionally, you must have no history of alcohol or substance abuse within the previous seven years and have a good driving record.
| Characteristics | Values |
|---|---|
| Blood pressure | ≤ 140/85 or ≤ 135/85 |
| Cholesterol | ≤ 245 if HDL ratio is ≤ 6.0 (or 290 if ratio is ≤ 5.5) |
| Tobacco use | No tobacco use in the last 1-5 years |
| Parent deaths | No parent deaths due to heart disease or cancer prior to age 60 |
| Personal health history | No history of cancer, heart disease, cerebrovascular disease, diabetes, or ratable medical issues |
| Driving record | Less than 3 moving tickets in the last 3-7 years, no DUI, reckless driving, or license suspension/revocation |
| Job and recreational activities | Low risk, no hazardous activities |
| Height and weight | Within the Preferred-Plus range on the build table |
| Age | Younger applicants receive lower rates |
| Lifestyle factors | No history of drug or alcohol abuse |
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What You'll Learn
Blood pressure and cholesterol levels
To achieve the best possible rates, you need to show that you have normal blood pressure and cholesterol readings. However, the exact requirements vary depending on the rating class. For instance, a standard plus rating typically requires a blood pressure reading of ≤ 145/88 and a cholesterol reading of ≤ 260 if your HDL ratio is ≤ 7.0 (or 290 if the ratio is ≤ 6.5). On the other hand, a preferred rating usually requires a lower blood pressure reading of ≤ 140/85 and a cholesterol reading of ≤ 245 if your HDL ratio is ≤ 6.0 (or 290 if the ratio is ≤ 5.5).
If you are a smoker, you will generally need to show even lower blood pressure and cholesterol readings to achieve a preferred rating. For example, a preferred tobacco rating typically requires a blood pressure reading of ≤ 140/85 and a cholesterol reading of ≤ 245 if your HDL ratio is ≤ 6.0. However, it is important to note that the specific requirements may vary across different insurance providers.
To improve your health and lower your premiums, you can take steps to actively manage your blood pressure and cholesterol levels. This may include lifestyle changes, such as quitting smoking, losing weight, and increasing physical activity. By improving these health metrics, you can potentially reduce the premium you are offered and qualify for a better, lower-cost risk category.
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Weight and height
Being overweight or obese can result in higher premiums, as it is associated with an increased risk of health issues. Losing weight can help individuals qualify for better rates, as improving blood pressure and cholesterol readings can lead to lower premiums. However, insurance companies also consider weight history, so sudden or short-term weight changes may not significantly affect rates. Significant weight loss over a year or more is more likely to impact an individual's rating class.
The Preferred rating class, also known as Non-Tobacco/Non-Smoker Preferred, has the second-lowest premiums. Individuals in this category typically have a BMI of 30 or 31, with a height-to-weight ratio within the company's Preferred range. For example, a 5-foot-10-inch man weighing between 129 and 219 pounds or a 5-foot-5-inch woman weighing between 112 and 189 pounds could qualify for "preferred" rates with AIG.
The Standard Plus rating class has the third-lowest premiums. Individuals in this category typically have a BMI of 32 or 33, with a height-to-weight ratio within the company's Standard Plus range.
Table ratings are assigned to applicants with more serious health conditions or a higher BMI, typically between 41 and 48. These table ratings increase the standard rate, with each higher table rating adding approximately 25% to the base premium.
It is important to note that insurance companies have different underwriting criteria, so rates can vary significantly between providers. Shopping around and consulting an independent life insurance agent can help individuals find the most suitable policy for their circumstances.
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$23.56 $27.95
Smoking status
To qualify for non-smoker rates, you will generally need to have abstained from tobacco use for at least a year, although some companies require no tobacco use for at least five years. Some companies may still offer preferred rates to occasional cigar smokers, as long as nicotine tests are negative.
If you are a smoker, you may be placed in a "Preferred Tobacco" or "Standard Plus" rating category, depending on your health. A "Preferred Tobacco" rating will require a blood pressure reading of ≤140/85 and a cholesterol level of ≤245 if your HDL ratio is ≤6.0 (or 290 if the ratio is ≤5.5). A "Standard Plus" rating means your blood pressure must be ≤145/88 and your cholesterol ≤260 if your HDL ratio is ≤7.0 (or 290 if the ratio is ≤6.5).
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Family medical history
When applying for life insurance, it is common for insurers to ask about your family's medical history. This is because some medical conditions are genetic, and understanding your family history helps an insurer to better understand your overall health and longevity. Insurers take into consideration a variety of factors when assessing the cost of your life insurance, including your age, whether you've suffered any illnesses, whether you smoke, and your family's medical history.
If someone in your immediate family has a history of illnesses like heart disease, diabetes, kidney disease, or cancer, you might pay more for life insurance. However, your personal health history is a bigger factor in determining the cost of your life insurance. If serious health conditions exist in your family's medical history, you will still be able to get life insurance coverage, but you may have to pay higher premiums.
For example, if your mother and sister have both had breast cancer, this could signal to the life insurer that they need to learn more about your health risks. Similarly, having a parent who died of a heart attack at 45 will present a higher level of risk than a parent who was first treated for heart disease at age 75.
It's important to be honest about your family's medical history, as insurers confirm your application against existing health records. Failing to reveal important information can invalidate your policy. However, if you do have a family history of these types of conditions, demonstrated monitoring and management can have a positive impact on the premiums you pay.
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Lifestyle factors
Life insurance companies use lifestyle factors to determine an individual's risk category, which, in turn, determines their premium rates. These factors include smoking status, profession, and participation in risky activities.
Smoking Status
Smoking status is a significant lifestyle factor in determining life insurance ratings. Applicants who are non-smokers or who have not used nicotine or nicotine substitutes for at least five years may qualify for the best possible rates. Some insurers may still offer preferred non-smoker rates to applicants who smoke the occasional cigar, provided that nicotine test results are negative.
Profession
An individual's profession can also impact their life insurance rating. Occupations that are considered more dangerous may result in higher premium rates.
Risky Activities
Participation in risky activities, such as skydiving, rock climbing, hang gliding, and bungee jumping, can also affect an individual's life insurance rating. These activities indicate a higher level of risk and may result in higher premium rates.
It is important to note that lifestyle factors are not the only considerations for life insurance ratings. Medical history, health status, age, and gender also play a significant role in determining an individual's risk category and premium rates. Additionally, each insurance company may have its own criteria and weightings for these factors, resulting in different quotes and classifications across providers.
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Frequently asked questions
Preferred Plus is the highest and best rating class for life insurance. Only the top 20% of the population tend to qualify. It comes with the lowest premiums.
To qualify for a Preferred Plus life insurance rating, you must be in excellent overall health. You must not have smoked or used any tobacco or nicotine products in the past three to five years. You must have a normal weight, blood pressure, and cholesterol for your height. You must have a clean driving record and no history of drug or alcohol abuse. You must also have no history of cancer, heart disease, cerebrovascular disease, or diabetes.
To qualify for a Preferred Plus life insurance rating, you should apply when you are young and address any health issues. You can also improve your chances by taking vitamins or supplements to aid in preventing flareups and keeping your blood pressure and cholesterol in check.
A Preferred Plus life insurance rating comes with the lowest premiums. You will save more money each month compared to other rating categories.
