Risk Classification

Risk classification is the process insurers use to categorize applicants based on their relative mortality risk, determining which rate class and premium they receive. Standard risk classes include (from best to worst): Super Preferred / Preferred Plus (best health, lowest rates), Preferred, Standard Plus, Standard, and Substandard (Table ratings). Factors affecting classification include age, gender, tobacco use, health history, family history, build (height/weight), occupation, hobbies, and motor vehicle record. Each carrier has its own underwriting guidelines, meaning the same applicant may receive different rate classes from different carriers. This is why shopping multiple carriers is valuable.