What does your life insurance rate really mean? All these classifications– with titles such as “Super Preferred” and “Standard Plus” – are used by insurance companies to categorize your risk of dying. They are better known as life insurance risk classifications, based on underwriting guidelines that every insurance company has. The carriers each have their own criteria in rating you but the premise is the same – calculating your life expectancy. Here we help you better understand what these classifications mean, how you might be rated and how it translates into how much you will pay for life insurance.
Four main factors are used to determine the total premium – your age, the amount of coverage, the number of years the coverage is guaranteed, and the risk class. Every life insurance company differs slightly in their underwriting guidelines, which determine the rate class you will qualify for. The insurance company will take into consideration the following:
Learn more specifics about how rate classifications/risk classes work, click here.
If you’re unsure of which risk classification you qualify for, how much coverage you need, or how long the term should be, connect with one of our knowledgeable representatives immediately. You can send us an email or call our licensed agents at 1-800-521-7873. To compare quotes, simply click get a quote and you will be taken to a page that asks you to complete a form.