Life Insurance Rating Classes
Your life insurance premium will be determined by a long list of underwriting criteria. This is designed to calculate your risk of dying prematurely. Most life insurance companies split rating classes into three categories.
- Preferred: Receive the lowest premium rates
- Select: Receive mid-range premium rates
- Standard: Receive the highest premium rates
Your life insurance provider will require a detailed list of information about your health and lifestyle habits. As far as health goes, they may want to know of any family history of cancer or cardiovascular disease, your cholesterol levels, blood pressure, and current illnesses. Life insurance companies may also ask you what type of job you perform, whether it requires travel, if you've had a problem with alcohol or a DUI incident or have used illegal drugs. Hobbies such as extreme sports or aviation will also be considered when selecting your rating class.
Each life insurance company has its own rating class system. For this reason, it really pays to shop around and see who will give you the best rate.
Sources
- Life Insurance Glossary. Retrieved May 12, 2008, from http://www.smartmoney.com/insurance/life/index.cfm?story=lifeglossary#twelve
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