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Why it is important to understand health classifications in life insurance



Maybe you've heard of "Preferred" or "Standard" as it pertains to life insurance ratings and have scratched your head.

What do these ratings mean, and more importantly, how do they affect you?

Stay with me for a few minutes and we will answer these questions and more.

Life insurance ratings and premiums

  your health rating affects your life insurance levels

The reason Life insurance ratings are important because your health rating affects your premium. The better your rating, the lower your contribution.

Most life insurance companies have between 12 and 15 health ratings that can look like this.

  • Preferred Plus – The best category (only about 5% of people) qualify for Pref. Plus)
  • Preferred – Second best, an excellent rating
  • Standard Plus – Better than average health
  • Standard – An applicant in "average" health and no Other risk factors may fall in this class

These four main health classifications are generally given to these individuals on average or better than average health without other risk factors such as tobacco use or dangerous hobbies or travel. [19659013] Compare the offer now!

Table prices and higher premiums

Then you have under Standard what is called table rating. These are all substandard ratings, so a company can still approve you to a substandard rating that is still an approval, so that's fine, but your premium is increasing.

Most companies have 8 to 10 table interest rates and are usually referred to as in letters or numbers . For example, if a client passed a level below standard, this would be called Table A or Table 1.

How much does my health rating affect my premium?

In general, most companies charge about 25% premium for each lower health rating so if you pay $ 100 per year for the best class, the same person of the same age and gender who gets a preferred grade, a class down from the preferred class, pay about $ 125.

The same applies when you enter the classification for substandard tables. If you pay $ 200 for it, you can pay $ 150 for Table 2 or Table B, because there are two tables of 25% each.

RELATED: 5 Critical Tips You Must Know Before Buying Life Insurance [19659022] What Affects My Health Classification?

The main factors affecting your rating are yours:

  • Health
  • Family history of heart disease or cancer
  • Dangerous activities (high-risk sports, occupation or travel outside the United States)

How health affects your classification

In most cases, your health classification will not be affected by health incidents that occurred over ten years ago, unless it was a serious medical condition, such as cancer, heart attack or stroke

But if you had pneumonia twelve years ago and were short-lived in the hospital for it and have not had any problems since, you can probably be sure that it will not have any effect on your rating for it at most companies.

you were just in hospital w with pneumonia six months ago you could see that because it is more recent, it may give more cause for concern for the insurance companies and they may possibly judge you a bit for it. In general, however, you are downgraded for things like high blood pressure, high cholesterol, diabetes, obesity.


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Influence of family history on your grade

You can also be downgraded for things beyond your control, such as a family history of heart disease or cancer. For example, a 30-year-old in perfect health, who has never been to a hospital, never taken medication, can still be lowered as much as two health classes, all the way down to standard plus, if both his parents died of cancer before the age of 60.

It may seem unfair, given his good health, but genesis has shown that there is a higher probability of getting cancer in individuals who have had parents with cancer.

So yes it is hereditary and yes the insurance companies will punish you for it.

Dangers – Dangerous Travels, Occupations or Hobbies

Other non-health related things you could be punished for would be dangerous activities, such as skydiving, being a pilot, diving under 100 feet, rock diving and so on.

You have to put yourself in the insurance company's shoes and think that anything that can increase your likelihood of premature death is something they will potentially ask about on their applications and pe

So, if you travel three months a year to a remote region of China that is not modernized, this can cause concern, possible punishment and possibly even a decline. Our last thing the insurance company looks at is your profession. You can be punished for a very dangerous profession.


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Quotes are fast, easy, and free! [19659034] What can I do to get a better health rating?

In most cases, there is not much you can do to improve your health rating, unless of course you have been rated as a smoker. In this case, you can quit smoking, wait a year and then reapply as a non-smoker.

Sometimes there are small thresholds to get you to a better grade, for example with height and weight. If you are five feet ten, ten and need to weigh under 190 pounds to get a preferred plus rating from a company, and you only weigh 194 pounds, you can make an effort to diet and exercise a few weeks before taking your degree to try to get the best health class.

Remember that it can save you about 25% by getting a grade better, so it's worth the effort.

Many agents do not know what these thresholds are, but there are thresholds for how high your cholesterol may be, how much you can weigh, thresholds for how often you can smoke a cigar and various factors like this that determine your health rating, so make sure you use an independent agent like me, who can explain the difference to you between the different companies and help you apply to the company that will give you the best rating, or help you come up with a plan to get you to a better grades.

A special remark about losing weight: Many people tell me that they would like to postpone their life insurance application because they want to lose 10-15 pounds. In many cases this can help my client, but in many cases it may not. 19659003] It may help in the situation I mentioned above, where you only need to lose a few kilos and then fall under a better health rating, but there is a chance that you need to lose more than 10-15 pounds to get a better health rating , so even if you take the time to lose ten pounds, you may still not get better grades.

What none of my clients know is also that insurance companies understand that some people try to lose weight fast before applying, so they only give you credit for half of your weight loss in the past year.

In other words, if you have lost 30 pounds in the last year they will only give you credit for fifteen pounds of it and if you weigh 200 pounds now, they will treat you like a 215 pound indi

Again This may seem unfair, but odds are that many individuals who lose large amounts of weight in a short period of time will regain that weight.

As always, if you have any questions, call us at the office at 888-603-2876 or to get a quote, use our direct insurance quote form on the right. Thanks.


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* While doing our utmost to keep our site up to date, please be aware that "current" information on this site, such as quotation estimates or relevant company information, may only be accurate as of the last day of editing. Huntley Wealth & Insurance Services and its representatives do not provide legal or tax advice. Please contact your own legal or tax advisor.


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