Haris Ashley
Standard status in life insurance is one of four rating classes, which include Preferred Plus, Preferred, and Standard Plus. The standard rating is for those with average health and a normal life expectancy. This means that a person in this category may have one or more health concerns depending on their age. A standard rating indicates that you have the same life expectancy as the average person of your age and gender.
| Characteristics | Values |
|---|---|
| Health | Average health, with some minor health problems or lifestyle issues |
| Life expectancy | Same as the average person of the same age and gender |
| Smoking status | Smoker |
| Premium | Higher than preferred rates |
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What You'll Learn
Standard vs. Preferred Life Insurance Rates
Life insurance rates are determined by health rating classes, with 'standard' and 'preferred' being the most common categories. The main difference between the two is that standard rates are for those with average health and life expectancy, while preferred rates are for applicants with better health and a longer life expectancy, offering lower premiums.
A standard rating indicates that you have the same life expectancy as the average person of your age and gender. This health rating is assigned to the majority of people who apply for life insurance. A person in this category may have one or more health concerns, depending on their age, such as high cholesterol or obesity.
In contrast, a preferred rating is given to applicants who are expected to live longer than average based on their age and gender. To receive a preferred rating, you must be in excellent overall health, not participate in any hazardous activities, and have no history of drug or alcohol abuse.
It's important to note that rates and criteria can vary from company to company, and some insurers might attach temporary extra charges, known as "flat extras", for certain conditions. For example, a cancer survivor might qualify for standard rates plus a $5 flat extra per $1,000 of coverage for five years. Additionally, smokers who would otherwise fall into the standard category may be assigned a higher rating, resulting in higher premiums.
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Standard smoker
Standard status in life insurance is for those with average health and a normal life expectancy. This is the majority of people who apply for life insurance. A person in this category may have one or more health concerns, depending on their age. For example, they may have had some minor health problems in the past, or have current lifestyle issues, such as high cholesterol or obesity.
A standard smoker is a smoker who would otherwise fall into the standard non-smoker category. This means that they are an average person with a normal life expectancy. Some people may not qualify for standard rates because of health conditions such as diabetes but will still be eligible for coverage. In these cases, the insurance company assigns a 'table rating', which adds another 25% to the standard rate. For example, a table rating of C means a standard rate plus 75%. Sometimes an insurer might attach a temporary extra charge, known as a 'flat extra'. A cancer survivor, for instance, might qualify for standard rates plus a $5 flat extra per $1,000 of coverage for five years.
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Standard nonsmoker
To qualify for standard rates, you may have had some minor health problems in the past or have current lifestyle issues, such as high cholesterol or obesity. A person in this category may have one or more health concerns, depending on their age.
Standard smoker is a rating for smokers who would otherwise fall into the standard nonsmoker category. Some people may not qualify for standard rates because of health conditions such as diabetes but will still be eligible for coverage. In such cases, the insurance company assigns a "table rating". Each higher table rating typically adds another 25% to the standard rate. For example, a table rating of C means a standard rate plus 75%.
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$27.99
Standard rates
Some people may not qualify for standard rates because of health conditions such as diabetes but will still be eligible for coverage. In these cases, the insurance company assigns a "table rating", which adds a percentage to the standard rate. Sometimes an insurer might attach a temporary extra charge, known as a "flat extra". For example, a cancer survivor might qualify for standard rates plus a $5 flat extra per $1,000 of coverage for five years.
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Standard Plus
A Standard Plus rating may be given to people who are in good health but have some minor health problems or lifestyle issues, such as high cholesterol or obesity. It is also possible for smokers to receive a Standard Plus rating if they would otherwise fall into the standard non-smoker category.
The specific criteria for receiving a Standard Plus rating may vary from company to company, but generally, it indicates that an individual is in good overall health, does not participate in any hazardous activities, and does not have a history of drug or alcohol abuse.
It is important to note that life insurance rates are subject to medical underwriting, which means that the younger and healthier you are, the cheaper your rates will be.
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Frequently asked questions
Standard status in life insurance is for those with average health and a normal life expectancy.
Preferred status is for applicants with better health, offering lower premiums. A standard rating indicates that you have the same life expectancy as the average person of your age and gender.
A table rating is an extra charge that an insurance company may assign if you don't qualify for standard rates because of health conditions. Each higher table rating typically adds another 25% to the standard rate.
A flat extra is a temporary extra charge that an insurance company might attach to your standard rate. For example, a cancer survivor might qualify for standard rates plus a $5 flat extra per $1,000 of coverage for five years.
To qualify for standard rates, you may have had some minor health problems in the past, or have current lifestyle issues, such as high cholesterol or obesity.
