Life Insurance Rate Classes

Written by Amy Hall
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Life insurance companies determine rates based on the information you provide them with regarding your health. Life insurance rate classes categorize people according to their risks, such as preferred plus, preferred, and standard. Obviously, if you have minimal risk factors and you have a clean driving record, you would be considered a preferred plus applicant.

The factors that determine where you fall in the life insurance rate class chart include questions about your health, your parents' health, your age, and even your citizenship. Your weight should fall into an acceptable range for your height, and your blood pressure should be considered in the normal range. In addition, your cholesterol levels must not be elevated, and your parents must not have had heart disease or cancer before the age of 60. This also goes without saying that you must not be a smoker or use tobacco products.

If all of these criteria fall into the normal range, you would be considered a preferred plus applicant. The more problems you encounter health-wise, the higher your life insurance rates would be. For instance, if you smoke, are 20 pounds overweight, and have high cholesterol and blood pressure, you would likely have to pay standard rates, which are higher than preferred or preferred plus rates.

Where Do You Fall under the Life Insurance Rate Classes?

Knowing where you fall under a company's guidelines for classes is important. This means that you can perhaps change some factors being undergoing the medical exam and application, in order to get lower rates. For instance, if you only have 10 pounds to lose to get into the acceptable weight range, you could try to lose that weight, and then apply for a life insurance policy.

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