Understanding Rate Classes

Determining Life Insurance Health Classifications

Purchasing life insurance is a task that can be difficult for many individuals to understand. Thankfully, there are four classifications that can help consumers to determine how their premiums will be calculated. The four premiums include Preferred Plus, Preferred, Regular Plus and Regular.

Preferred Plus is the best classification you could be assigned by an insurance company. Preferred Plus customers will also have the lowest rates available from the life insurance provider. Typically, a customer must be in excellent health and not have used tobacco within the last three to five years. Individuals also must be free of major medical problems as well as have no family history of major medical issues before the age of 60.

Preferred customers are the second rate class available to consumers who may not qualify for Preferred Plus. Customers generally cannot have used tobacco within the past two years and family history of major medical issues is not a major component of underwriting the policy.

Regular Plus customers are the third rate class. Regular Plus customers may have minor health problems such as obesity, high cholesterol or high blood pressure. These issues are often controlled by medication or medical management. Generally, a customer will not qualify for a Regular Plus classification with major health issues such as heart disease, diabetes or cancer.

Regular customers are the fourth rate class that a life insurance customer may belong to. Regular customers may have more complicated health issues and generally require higher premiums due to the increase risk to the insurance company. Underwriters from the life insurance company determine whether a customer must be placed into regular rates.

While many consumers may not understand the different classifications of life insurance, the process does not need to be complicated. Life insurance companies analyze customers based on risk and determine whether a customer should receive Preferred Plus, Preferred, Regular Plus or Regular rates.

Now that you know a bit more about your life insurance rate class and health classifications, are you ready for your free quote? If so, get your quick, no-obligation quote now by filling out our simple online form. You could save up to 70% on your life insurance coverage!