Wheeling, IL (PressExposure) December 28, 2009 -- AccuQuote, a leader in providing term life insurance quotes to people across the United States, explains term life insurance rate classifications and uncovers the qualifications associated with each one.
When applying for life insurance, consumers are placed into rate classifications based on the health and lifestyle information they provide on their application. Life insurance companies use these classifications to determine how much consumers will pay for their term life insurance coverage.
"If you're not sure what rate class to apply for, choose the one that seems most similar to your health and lifestyle," says Byron Udell, founder and CEO of AccuQuote. "It's often that life insurance underwriters will place you in a better rate class after applying than what you originally assumed."
AccuQuote uncovers the general qualifications associated with each rate classification:
- Preferred Plus - Consumers should recognize that this rate class is for people who are in overall excellent health. This includes no tobacco use, no history of drug or alcohol abuse and no participation in hazardous activities, such as extreme sports.
- Preferred - Generally, to qualify for preferred rates consumers must be in excellent overall health and must not participate in any hazardous activities.
- Standard - Standard risks refer to consumers who have had some minor health impairments. Examples of someone who would qualify for standard rates would include people who have elevated cholesterol levels, are overweight or regularly engage in tobacco use.
- Substandard - This rate class encompasses consumers who have more than mild health conditions. An additional charge will be added to these people's premiums depending on the risk factors involved.
Consumers can find out which rate class they qualify for by contacting a multi-carrier life insurance brokerage firm like AccuQuote. AccuQuote's licensed life insurance professionals will determine a consumer's rate class and find them the best value in term life insurance rates among dozens of top-rated life insurance carriers.
"Keep in mind that underwriting guidelines vary among life insurance companies, so where one company may charge you a higher premium, another company may place you in a better rate class," says Udell. "The most important thing to remember is that you shouldn't leave anything out on you term life insurance application. If you do, you risk leaving your family unprotected should something devastating happen due to a condition your life insurance carrier was unaware of."