How Health Classifications Affect Life Insurance Rates

Article At A Glance

• Life insurers can place medically underwritten applicants into underwriting or rate classifications. The names and requirements vary by insurer and product.
• Common labels can include Preferred Plus, Preferred, Standard Plus, Standard, and rated or table classifications. Not every insurer uses every label.
• Your classification can affect the premium you’re offered. There is no universal percentage difference between one classification and another.
• A particular diagnosis does not automatically determine your classification. Insurers can consider the complete medical and underwriting picture.
• The same applicant can potentially receive different classifications from different insurers. Underwriting guidelines and pricing structures are not identical across the market.

How do health classifications affect life insurance rates? When medical underwriting is used, an insurer can evaluate the application and place an applicant into an underwriting classification that helps determine the premium offered.

The important point is that there is no universal classification system used identically by every life insurance company.

A classification such as Preferred or Standard is meaningful only in the context of the insurer, policy, and applicant being evaluated.

What Is a Life Insurance Health Classification?

A life insurance health classification—also commonly called an underwriting or rate class—is a category an insurer can use when evaluating an applicant’s risk and determining pricing.

The classification can reflect information gathered during underwriting.

Depending on the insurer, product, and applicant, underwriting information can include:

• Medical history
• Current health
• Medications
• Laboratory information when relevant
• Height and weight or other measurements
• Tobacco or nicotine use
• Family medical history when relevant
• Driving history when relevant
• Occupation or activities when relevant
• Other underwriting information

What Are the Common Life Insurance Rate Classes?

Classification names vary by insurer.

Depending on the company and product, labels can include:

• Preferred Plus
• Preferred
• Standard Plus
• Standard
• Rated or table-rated classifications
• Other insurer-specific categories

Not every insurer uses all of these categories, and similarly named classifications do not necessarily have identical eligibility requirements.

What Is Preferred Plus Life Insurance?

Preferred Plus, Super Preferred, Preferred Best, and similar terms can be used by some insurers for a particularly favorable underwriting classification.

The specific requirements are determined by the insurer.

Do not assume that being young, exercising regularly, taking no medication, or considering yourself healthy automatically qualifies you for the most favorable class.

What Is a Preferred Classification?

Preferred is another classification used by some insurers for applicants who satisfy that company’s applicable underwriting criteria.

The criteria can differ from those used for the company’s most favorable classification.

A Preferred offer from one insurer should not automatically be treated as equivalent to a Preferred offer from another insurer.

What Is Standard Plus?

Some insurers use Standard Plus or a similarly named category between Preferred and Standard classifications.

Other insurers do not use that classification at all.

The actual premium and eligibility criteria depend on the company and product.

What Is a Standard Life Insurance Classification?

Standard is a commonly used underwriting classification, but its meaning is insurer-specific.

An applicant receiving Standard coverage has not necessarily been classified as unhealthy or high risk.

Likewise, a Standard classification does not correspond to one universal premium.

What Is a Rated or Table-Rated Life Insurance Policy?

Some medically underwritten applicants can be offered coverage at a premium above an insurer’s Standard pricing.

Insurers can use table ratings or other rating methods to price that coverage.

The terminology and pricing method depend on the insurer.

Do not assume that every medical condition produces a table rating or that every table rating increases premiums by the same percentage.

Does Each Rate Class Have a Fixed Premium Increase?

No.

The original article claimed that moving between classifications can increase premiums by fixed percentages and that certain health conditions can double or triple rates.

There is no universal percentage schedule.

The premium difference between classifications depends on:

• Insurer
• Policy
• Applicant
• Death benefit
• Term length when applicable
• Age
• Other pricing factors

Does Preferred Plus Always Have the Lowest Premium?

Within a particular insurer’s policy structure, a more favorable underwriting classification can correspond with more favorable pricing.

However, consumers should compare actual quotes rather than assume a Preferred Plus offer from one insurer is necessarily cheaper than every Preferred or Standard offer available elsewhere.

Can Two Insurers Give You Different Health Classifications?

Potentially.

Insurers can use different underwriting guidelines, classification names, thresholds, products, and pricing structures.

The same applicant can therefore potentially receive different underwriting decisions from different companies.

That does not mean one insurer is necessarily more “lenient” or that an agent can predict the outcome before underwriting is completed.

Does High Blood Pressure Automatically Mean Standard Rates?

No.

An insurer can consider hypertension together with:

• Current blood pressure
• Treatment
• Medications
• Cardiovascular history
• Other medical conditions
• Overall health
• Other underwriting information

There is no universal hypertension-to-rate-class chart.

Our Life Insurance With High Blood Pressure (Hypertension Guide) addresses hypertension separately.

Does High Cholesterol Automatically Lower Your Rate Class?

No.

An insurer may consider cholesterol information together with cardiovascular history, medications, laboratory information when relevant, other medical conditions, and overall health.

A particular cholesterol result does not automatically produce one universal classification.

Does Diabetes Automatically Mean a Rated Policy?

No.

An insurer may consider:

• Diabetes type
• Treatment
• Medications or insulin use
• Laboratory information when relevant
• Complications when applicable
• Other medical conditions
• Overall health

There is no universal diabetes classification.

Our Can Diabetics Qualify for Life Insurance? guide explains diabetes underwriting separately.

Do Depression or Anxiety Automatically Prevent Preferred Rates?

No universal rule says that they do.

An insurer may consider the diagnosis, treatment history, medications, current medical status, hospitalizations when relevant, and other underwriting information.

The diagnosis alone does not determine the classification.

Does Taking Prescription Medication Lower Your Health Classification?

Not automatically.

Prescription information can provide context about medical treatment and the underlying condition.

The medication name alone does not determine the underwriting result.

Our Can You Get Life Insurance If You Take Prescription Medications? guide explains this issue separately.

Does Being Overweight Automatically Change Your Rate Class?

No.

An insurer may consider height and weight or other body-measurement information as part of underwriting.

Different insurers can use different build guidelines.

There is no universal rule that being a specified number of pounds above a target weight increases premiums by 25% to 50% or automatically moves an applicant down multiple classifications.

Does Family Medical History Affect Health Classifications?

Potentially, when family history is relevant under the insurer’s underwriting guidelines.

The significance can depend on:

• Medical condition
• Family relationship
• Age at diagnosis or death when relevant
• Insurer
• Other underwriting information

Not every insurer evaluates family history identically.

Does Tobacco or Nicotine Use Affect Your Rate Class?

Potentially.

Insurers can use separate tobacco or nicotine classifications and can define different forms of use differently.

Application questions can address:

• Cigarettes
• Cigars
• Vaping
• Smokeless tobacco
• Nicotine products
• Former use
• Other tobacco or nicotine exposure

There is no universal smoker-to-nonsmoker premium multiplier or lookback period that applies to every insurer.

Our Can Smokers Get Life Insurance? Rates & Best Options guide addresses this subject separately.

Can Former Smokers Qualify for a Different Classification?

Potentially.

Insurers can use different definitions and timeframes for former tobacco or nicotine use.

Do not assume that being tobacco-free for one year, three years, five years, or another period automatically produces a particular classification.

Our Life Insurance for Former Smokers: When Do Rates Drop? guide explains this issue separately.

Does Your Age Determine Your Health Classification?

Age can affect life insurance pricing and eligibility, but it is different from the medical underwriting classification itself.

Two applicants with the same underwriting classification but different ages can have different premiums.

Likewise, two applicants of the same age can receive different classifications.

Does Your Sex Affect the Health Classification?

Sex can be a pricing factor when permitted, but it should not automatically be confused with the health classification.

The premium offered can reflect multiple pricing factors in addition to the underwriting class.

Can Driving History Affect a Life Insurance Classification?

Potentially, when driving information is relevant to the insurer’s underwriting.

An insurer may consider information such as serious violations, impaired-driving history, or other motor-vehicle information according to its guidelines.

There is no universal rule stating that a DUI or other driving event automatically moves an applicant down a specified number of rate classes.

Can Your Occupation or Hobbies Affect Underwriting?

Potentially.

An insurer may consider occupational or recreational risks when relevant.

Depending on the circumstances, that can involve activities such as aviation, diving, climbing, racing, or other activities.

The actual activity, frequency, experience, and insurer requirements matter.

What Information Can Be Used to Determine a Health Classification?

The underwriting process depends on the insurer, product, applicant, and requested coverage.

Depending on the circumstances, information can potentially come from:

• The insurance application
• Health questions
• Medical examinations when required
• Laboratory information when required
• Medical records when authorized and required
• Prescription information when permitted
• Consumer information when permitted
• MIB information when applicable
• Other underwriting sources permitted for the transaction

Not every application uses every source.

Does Every Life Insurance Application Require a Medical Exam?

No.

Underwriting approaches can include traditional underwriting, accelerated underwriting, simplified issue, guaranteed issue, and other processes.

No medical exam does not necessarily mean no underwriting.

Our No Medical Exam Life Insurance: Who Actually Qualifies? guide explains these approaches separately.

Can No-Exam Life Insurance Still Have Health Classifications?

Potentially, depending on the product and underwriting approach.

An insurer can use health and other underwriting information without requiring a traditional medical examination.

Do not assume all no-exam coverage uses one Standard classification or automatically costs more than medically examined coverage.

What Is Accelerated Underwriting?

Accelerated underwriting can use available data and insurer-specific underwriting methods to evaluate eligible applicants without requiring every applicant to complete a traditional medical examination.

Eligibility and the resulting classification depend on the insurer, product, applicant, requested coverage, and other requirements.

Accelerated underwriting does not mean guaranteed approval.

Can You Request a Better Health Classification?

An applicant can ask an insurer or insurance professional to explain an underwriting decision and whether the insurer has a reconsideration process.

However, there is no universal right to select or negotiate a preferred classification.

The insurer determines the underwriting decision according to its guidelines and information available to it.

What if the Underwriting Information Is Wrong?

If information used in underwriting appears inaccurate, determine where the information came from.

Depending on the source, there may be a process for reviewing or disputing inaccurate information.

For example, inaccurate medical records should be addressed with the appropriate healthcare provider, while consumer-report information can have separate dispute procedures.

Do not change application answers to compensate for information you believe is wrong elsewhere.

Can Your Rate Class Improve After the Policy Is Issued?

Potentially, if the insurer and policy provide a reconsideration or reclassification process.

There is no universal rule requiring insurers to reconsider a classification after a specified number of years.

Likewise, improved health does not automatically reduce the premium on an existing policy.

Should You Stop Medication or Change Treatment to Improve Your Classification?

No.

Healthcare decisions should be based on your health needs rather than an attempt to obtain a particular insurance classification.

Do not stop medication, change treatment, delay appropriate care, or make other medically inappropriate changes solely to influence underwriting.

Should You Lose Weight Before Applying for Life Insurance?

Healthcare and weight-management decisions should be based on appropriate health considerations.

There is no guarantee that weight loss will produce a particular underwriting classification or premium.

Do not delay needed coverage solely because you are trying to reach an assumed insurance-company weight threshold.

Does Preferred Plus Mean the Policy Is Better?

No.

A favorable underwriting classification primarily concerns eligibility and pricing under the insurer’s classification system.

It does not mean the underlying policy automatically has better:

• Guarantees
• Conversion provisions
• Riders
• Coverage duration
• Cash value when applicable
• Other contract provisions

Compare the policy itself as well as the premium.

Should You Choose an Insurer Based Only on the Rate Class Offered?

No.

One insurer might use a classification name that sounds more favorable while another insurer offers a lower actual premium under a differently named classification.

Compare actual offers and policy provisions rather than labels alone.

Can an Independent Agent Compare Health Classifications?

An independent insurance agency may be able to provide information about products from more than one appointed insurer, depending on licensing, appointments, product availability, and other circumstances.

Different insurers can reach different underwriting decisions.

However, an agent should not promise that a particular company will provide Preferred rates or claim that an applicant can always be directed to the insurer most likely to give the best classification.

Can an Agent Guarantee the Lowest Rate?

No.

Neither a particular classification nor access to multiple insurers guarantees the lowest premium available anywhere in the market.

The useful comparison is between actual offers available to the applicant.

How Should You Compare Life Insurance Offers With Different Rate Classes?

Compare the actual policy and premium rather than focusing solely on the classification label.

Important factors can include:

• Death benefit
• Premium
• Policy type
• Term length when applicable
• Premium guarantees
• Conversion provisions when applicable
• Riders or additional benefits
• Cash value when applicable
• Other contract provisions

A Preferred offer is not automatically better than a Standard offer if the policies themselves differ materially.

Does Your Health Classification Stay the Same Forever?

The classification used when a policy is issued is part of the pricing and underwriting associated with that policy.

A later health change generally does not mean the existing policy is automatically re-underwritten merely because your health changes.

However, a future application for additional or replacement coverage is a separate transaction and can involve new underwriting.

Does a Health Change Automatically Increase Your Existing Premium?

No universal rule says that it does.

The existing policy remains governed by its premium structure and contractual guarantees.

For example, a level-premium term policy can provide a guaranteed premium for its specified level period.

Other policy structures can work differently.

Does Buying Life Insurance Today “Lock In” Your Health Forever?

That phrase can be misleading.

An existing policy can remain in force according to its contract without requiring a new medical application merely because health later changes.

But that does not guarantee unlimited future insurability or the same classification on additional coverage.

Frequently Asked Questions

What Are Life Insurance Health Classifications?

They are underwriting categories insurers can use to help determine eligibility and pricing for medically underwritten coverage.

What Is the Best Life Insurance Health Classification?

Insurers use different classification systems.

Some use labels such as Preferred Plus or Preferred Best for particularly favorable classifications, but there is no universal naming system across all insurers.

What Is the Difference Between Preferred and Standard Life Insurance Rates?

The classifications can have different eligibility requirements and pricing within an insurer’s underwriting system.

There is no universal percentage difference between them.

How Much More Does Standard Cost Than Preferred?

There is no universal amount or percentage.

The difference depends on the insurer, policy, applicant, death benefit, term length when applicable, and other pricing factors.

Can You Get Preferred Rates With a Health Condition?

Potentially, depending on the medical circumstances, insurer, policy, and complete underwriting picture.

A diagnosis alone does not determine the classification.

Can Taking Medication Prevent Preferred Rates?

Not automatically.

The medication, condition being treated, treatment history, current health, and other underwriting information can all matter.

Can Two Life Insurance Companies Give You Different Rate Classes?

Yes, potentially.

Insurers can use different underwriting guidelines, classification systems, and pricing structures.

Can Your Life Insurance Rate Class Improve Later?

Potentially, if the insurer provides a reconsideration or reclassification process and its requirements are satisfied.

Improved health does not automatically change an existing premium.

Does Preferred Plus Mean You Have a Better Policy?

No.

The classification relates primarily to underwriting and pricing. The policy’s guarantees and other provisions must be evaluated separately.

Does No-Medical-Exam Life Insurance Have Rate Classes?

It can, depending on the underwriting approach and product.

No medical exam does not necessarily mean no underwriting.

How Health Classifications Affect Life Insurance Rates: The Bottom Line

Life insurance health classifications are underwriting categories that can help determine the premium offered to an applicant.

Names such as Preferred Plus, Preferred, Standard Plus, Standard, and rated classifications are not standardized across every insurer.

A diagnosis, medication, body measurement, family history, tobacco use, or other underwriting factor does not automatically produce one universal classification.

Different insurers can potentially reach different decisions because their underwriting guidelines and pricing structures differ.

When comparing offers, focus on the actual premium and policy provisions rather than classification labels alone.

Ranwell Insurance provides independent life insurance information and is a licensed insurance agency in Georgia. Product availability, eligibility, underwriting classifications, and insurance transactions depend on applicable requirements and the insurers involved.