Paul Sanchez
Life insurance companies offer different rates depending on the health of the applicant. A standard rate is for those with average health, while a preferred rate is for those in excellent health. Applicants with a standard rating may have had some minor health problems in the past or have current lifestyle issues, such as high cholesterol or obesity. To receive a preferred rating, applicants must be in excellent overall health, not participate in any hazardous activities, and have no history of drug or alcohol abuse.
| Characteristics | Values |
|---|---|
| Criteria | To receive preferred status, you must be in excellent overall health, not participate in any hazardous activities, or have a history of drug or alcohol abuse. 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. |
| Rates | Preferred rates are the lowest available. Standard rates are for those with average health. |
| Smoking | Life insurance companies have health ratings exclusively for smokers, like Preferred Smoker and Standard Smoker, which have considerably higher monthly premium rates. |
What You'll Learn
- Standard rates are for those with average health, while preferred rates are for those in excellent health
- Preferred rates are very competitive, but slightly higher than Preferred Plus rates
- Standard smoker and preferred smoker are two health ratings that life insurance companies use for smokers
- To receive preferred status, you must not participate in any hazardous activities
- Preferred-Plus life insurance rates are the lowest available and are given to those who do not use tobacco products
Standard rates are for those with average health, while preferred rates are for those in excellent health
Life insurance companies also have health ratings exclusively for smokers, like Preferred Smoker and Standard Smoker, which have considerably higher monthly premium rates. This means that if you are a smoker, you will likely pay more for life insurance than someone who does not smoke. It is important to shop around when looking for life insurance, as each company has its own underwriting criteria, and rates can vary significantly. For example, you might qualify as a preferred nonsmoker with one company and a standard nonsmoker with another, less lenient company. An independent life insurance agent can help you navigate the rates from different insurers, especially if you are applying for life insurance with a pre-existing condition.
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Preferred rates are very competitive, but slightly higher than Preferred Plus rates
Preferred rates are the lowest available and are given to people in optimum health. To qualify for these rates, you must be in excellent overall health, not participate in any hazardous activities, and have no history of drug or alcohol abuse. Preferred rates are very competitive, but they are slightly higher than Preferred Plus rates. To obtain these, you must not use any tobacco products, have no history of drug or alcohol abuse, and not engage in any hazardous activities.
Standard rates are for those with average health. To qualify for these rates, you may have had some minor health problems in the past or have current lifestyle issues, such as high cholesterol or obesity. Standard rates are higher than Preferred rates, and you may also be given a Standard rating if you are a smoker.
It is important to note that each company has its own underwriting criteria, so rates can vary significantly. This means that you may qualify as a preferred nonsmoker with one company and a standard nonsmoker with another. An independent life insurance agent can help you navigate these differences and find the best rates for your circumstances.
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Standard smoker and preferred smoker are two health ratings that life insurance companies use for smokers
Life insurance companies have different underwriting criteria, so rates can vary significantly. This means that you might qualify as a preferred nonsmoker with one company and a standard nonsmoker with another, less lenient company. It is important to shop around and weigh all your options when considering life insurance. An independent life insurance agent can help you navigate the rates from different insurers.
Some life insurance companies offer a Preferred-Plus life insurance rate, which is even lower than the preferred rate. To obtain this rate, you cannot use any tobacco products, have a history of drug or alcohol abuse, or engage in any hazardous activities.
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To receive preferred status, you must not participate in any hazardous activities
To receive preferred status for life insurance, you must not participate in any hazardous activities. This is because preferred rates are the lowest available and are bestowed upon people in optimum health. This means that you must be in excellent overall health and have no history of drug or alcohol abuse.
Hazardous activities are not defined, but they could include extreme sports or other activities that could be considered dangerous. For example, skydiving, bungee jumping, or even riding a motorcycle. It is important to note that each company has its own underwriting criteria, so what is considered a hazardous activity may vary.
It is also worth mentioning that preferred rates are very competitive, although they are slightly higher than Preferred Plus rates. To obtain this "rock bottom" rate, you must not use any tobacco products, have a history of drug or alcohol abuse, or engage in any hazardous activities.
If you are unsure whether your activities qualify as hazardous, it is best to consult with an independent life insurance agent. They can help you navigate the rates from different insurers and find the best option for your needs.
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Preferred-Plus life insurance rates are the lowest available and are given to those who do not use tobacco products
Life insurance companies have different health ratings, including standard and preferred. The main difference between the two is that standard rates are for those with average health, while preferred rates are for those in optimum health. Preferred rates are the lowest available and are given to those who are in excellent overall health, do not participate in any hazardous activities, and do not have a history of drug or alcohol abuse.
Preferred-Plus life insurance rates are even lower than preferred rates and are given to those who do not use tobacco products, have no history of drug or alcohol abuse, and do not engage in any hazardous activities. These rates are considered "rock bottom" and are very competitive. It is important to note that each company has its own underwriting criteria, so rates can vary significantly. For example, you might qualify as a preferred non-smoker with one company but as a standard non-smoker with another, less lenient company. Therefore, it is essential to shop around and compare rates from different insurers to find the best option for you.
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Frequently asked questions
Standard life insurance is for those with average health, who may have one or more health concerns depending on their age. Preferred life insurance is for those who are expected to live longer than average based on their age and gender. People with this health categorisation are in good health but may have a few small concerns, such as borderline high blood pressure.
Standard applicants will pay more premiums than preferred applicants. However, a standard rating does not impact your ability to get life insurance coverage, it only slightly impacts your price.
Life insurance companies have health ratings exclusively for smokers, like Preferred Smoker and Standard Smoker, which have considerably higher monthly premium rates.
Each company has its own life insurance underwriting criteria, so rates can vary. This means you might qualify as a preferred nonsmoker with one company and a standard nonsmoker with another, less lenient company. An independent life insurance agent can help you navigate the rates from different insurers.
