Jeffrey Wade
Life insurance companies use a variety of health ratings to determine the risk class of an individual. The highest health rating is usually reserved for the very healthiest people, and is associated with the lowest insurance costs. This rating is often called 'Preferred Plus' or 'Preferred Best', although different companies use different terminology. The second-highest health rating is 'Preferred', which is given to people who are relatively healthy but may have one slight risk factor such as high blood pressure or cholesterol. The third-highest risk rating is 'Standard Plus', which is for people who are fairly healthy but may have some additional risk factors. Table ratings are also used for applicants with more serious health conditions, with Table 1 having the lowest premiums and Table 10 the highest.
| Characteristics | Values |
|---|---|
| Highest health rating | Premier/Premium/Preferred Plus or Preferred Best |
| Second-highest health rating | Preferred |
| Third-highest health rating | Standard Plus |
| Lowest health rating | Table 10 (sometimes called Table J) |
| Lowest premiums | Table 1 (sometimes called Table A) |
| Qualifying factors | No immediate family members who have died from cancer or heart disease at an early age |
| Relatively healthy with no more than one slight risk factor, such as high blood pressure or cholesterol |
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What You'll Learn
Premier/Premium/Preferred Plus or Preferred Best
To qualify for this rating, you must be in optimum health. However, this does not mean that you have no risk factors. For example, you may have high blood pressure or cholesterol, but these factors must be controlled. Generally, you will not qualify for this rating if you have multiple risk factors.
Even relatively healthy people are usually a step or two below this rating, as it is reserved for the very healthiest people. Sometimes, even the healthiest people will not be given this rating if their family history contains health problems or early death of parents.
Table ratings are assigned to applicants with more serious health conditions or whose height-to-weight ratio falls within the company's table-rated range. Of the table ratings, Table 1 has the lowest premiums and Table 10 has the highest. Premiums for table ratings are set in relation to the insurer's rates for the Standard risk class.
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Preferred
A 'Preferred' health rating is the second-highest health rating for life insurance. Most people who are relatively healthy will fall into this risk rating. This rating is usually assigned if an applicant has one slight risk factor, such as high blood pressure or cholesterol, but not if multiple factors exist uncontrolled. The cost of insurance does not rise too sharply for the second-tier rating.
The highest health rating is usually called 'Premier', 'Premium' or 'Preferred Plus'. This is reserved for the very healthiest people. Even relatively healthy people are usually a step or two below this rating. Sometimes, the healthiest people will not be given the top rating if their family history contains health problems or early death of parents.
The third-highest risk rating is usually called 'Standard Plus'. This class is reserved for people who are fairly healthy but may have some risk factors such as high blood pressure, high cholesterol, or be overweight.
Table ratings are assigned to applicants with more serious health conditions or whose height-to-weight ratio falls within the company's table-rated range. Of the table ratings, Table 1 has the lowest premiums and Table 10 has the highest.
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Standard Plus
Most life insurance companies use the following terminology for risk classes: Premier/Premium/Preferred Plus or Preferred Best is the highest risk rating, associated with the lowest insurance costs. Different companies use different variations of this rating.
Preferred is the second-highest health rating. Most people who are relatively healthy will fall into this risk rating. Most insurance companies will assign this rating if an insurance applicant has one slight risk factor such as high blood pressure or cholesterol, but usually not if one is extremely high or if multiple factors exist uncontrolled.
Even relatively healthy people are usually a step or two below the highest rating, as this is reserved for the very healthiest among us. Sometimes even the healthiest people will not be given a top rating if their family history contains health problems or early death of parents.
Some life insurance carriers may have higher ratings, such as super select. A preferred rating is also associated with optimum health. However, this rating implies there could be certain factors that may indicate you pose a slightly higher risk than someone who would qualify for a preferred select rating. This can be attributed to a number of different factors and depends on how the insurance company differentiates between a select and preferred rating.
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Table ratings
The premiums for table ratings are set in relation to the insurer's rates for the Standard risk class. Rates for table ratings are generally calculated by adding 25% to the Standard rate for each level down the table. This means that the higher the table rating, the higher the premium.
It is important to note that even relatively healthy people are usually a step or two below the highest rating, as this is reserved for the very healthiest individuals. Sometimes even the healthiest people will not be given a top rating if their family history contains health problems or early death of parents.
Additionally, some life insurance carriers may have higher ratings than the standard Preferred Plus or Preferred Best, such as super select. A preferred rating is associated with optimum health, but there may be certain factors that indicate a slightly higher risk than someone with a preferred select rating. These factors can vary depending on the insurance company.
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Super select
Life insurance companies use different terminology for risk classes, but generally speaking, the highest health rating is Premier/Premium/Preferred Plus or Preferred Best. This is associated with the lowest insurance costs.
The second-highest health rating is Preferred, which is for people who are relatively healthy but may have one slight risk factor such as high blood pressure or cholesterol. The cost of insurance for this rating does not rise too sharply.
The third-highest risk rating is Standard Plus, which is for people who are fairly healthy but may have some risk factors such as high blood pressure, high cholesterol, or be overweight.
Even relatively healthy people are usually a step or two below the highest rating, as this is reserved for the very healthiest among us. Sometimes even the healthiest people will not be given a top rating if their family history contains health problems or early death of parents.
Some life insurance carriers may have higher ratings, such as Super Select. A Preferred rating is also associated with optimum health, but this implies there could be certain factors that indicate a slightly higher risk than someone with a Super Select rating.
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Frequently asked questions
The highest health rating in life insurance is usually Premier/Premium/Preferred Plus or Preferred Best. This is generally associated with the lowest insurance costs.
The second-highest health rating is Preferred. This is usually associated with relatively healthy individuals who may have one slight risk factor, such as high blood pressure or cholesterol.
The third-highest health rating is Standard Plus. This is reserved for people who are fairly healthy but may have some risk factors, such as high blood pressure, high cholesterol, or being overweight.
