What are life insurance health classifications and how do they affect my rate?

Insurance carriers use health classifications—also called rate classes or underwriting classes—to group applicants by risk level and assign corresponding premium rates. Understanding these classifications helps you set expectations about your premium quote.

Most carriers use four to six health classes. The most favorable is typically called Preferred Plus, Super Preferred, or Elite—reserved for applicants with excellent health histories, ideal measurements, and no family history of certain conditions. The next tier, Preferred, applies to individuals in very good health with minor issues. Standard Plus is for applicants in above-average health. Standard is the baseline class for average health, and Substandard (also called rated or table-rated) applies to applicants with significant health conditions.

Table ratings below Standard are expressed as percentage additions to the Standard premium. Table A (or Table 1) might add 25%; Table B adds 50%; continuing up to Table J or Table 10, which adds 250%. Some applicants may be declined for coverage if risk is considered too high for a given carrier.

The same applicant can receive different health classifications from different carriers. One insurer may rate a controlled diabetic at Standard; another may rate them at Table B. This variation makes comparing carriers valuable—and agents in our network, who represent multiple A-rated (A.M. Best) carriers, can help identify which carrier's underwriting guidelines are most favorable for your specific health profile.