Life insurance companies classify you into different rating categories based on your medical history and the results of the medical exam. Your life insurance underwriting classification, or rate class, determines how much you will pay for your premium. Because people are unique, they have different rate classes, based upon health and lifestyle characteristics. Although each life insurance company may have a different system of classification, generally they tend to stick to certain guidelines. The major difference will be in the names of their classifications and in the requirements to qualify for a rating class. The classifications can also differ between term life insurance and whole life plans especially in the extra rating categories. Insurance companies are generally most concerned if your condition will affect your life expectancy and make you a high death risk. Your classification will depend on the risk you pose to the insurance company. If your medical history does not affect your life expectancy or make you a high death risk, you will be included in the best class and offered the lowest rate. Most insurance companies call their best class, i.e. the class with the lowest rate the preferred plus or the preferred best. Some insurance companies prefer to call it the super preferred. The general requirements for this class are:
- No family history of death from cancer or heart disease before age 60 (65 for some companies)
- No tobacco use for 5 years (3 years for some companies)
- Blood pressure 130/80 or less
- Cholesterol (total) 200 or less
- No cancer or cardiovascular disease history
- No DUI or more than 2 moving violations in three years
- Meets the company height weight requirements
The next category is called preferred and its requirements are:
- No more than one death of a sibling or parent before age 60
- No tobacco use for 5 years (3 years for some companies). Some companies allow mild cigar or chewing tobacco use at this rating class.
- The height weight ratio is liberalized
- The total cholesterol limit is liberalized to up to 230 or 240
- The other health history areas are still in place
Besides this there is also the standard category which has rates higher than the preferred category. What you need to keep in mind is that the guidelines are not fixed and vary from company to company. If you are put in the standard category by one company, you may be put in the preferred category by another. So shop around before you buy life insurance.
