Life Insurance Basics
What is a life insurance health classification?
Life insurance health classifications determine your premium rate. Common classifications are: Preferred Plus (best health, lowest premium), Preferred, Standard Plus, Standard, Substandard (rated), and Tobacco User. Your classification is determined by your medical exam results, health history, and family history.
Key Points
- Preferred Plus: best health, lowest premium
- Preferred: excellent health, slightly higher premium
- Standard Plus: good health
- Standard: average health
- Substandard (rated): health issues — higher premium
- Tobacco User: 2-3x higher premium than non-tobacco users