When applying for life insurance, there are many factors that determine the ultimate premium rate you pay for the coverage. Medical history, height & weight, medications, family history, driving record, income, and more — all these paint a picture for an insurance carrier’s underwriting department whether you are a good insurance risk.
When you shop term insurance rates online or with an insurance broker, there is an assumed underwriting classification used to determine the premium rate. Do you know what classification was used? Why was it used? It is very common to see “preferred best” rates used on a life insurance quote. But is that appropriate? Will you get a preferred rate? Many life insurance applicants do not. Many of the term life insurance commercials on television and radio assume a “preferred best” scenario because it produces the least expensive premium rate. We feel it is inappropriate to assume you will get the very best life insurance rates.
Many of the term life insurance commercials on television and radio assume a “preferred best” scenario because it produces the least expensive premium rate. We feel it is inappropriate to assume you will get the very best life insurance rates.
We do a great deal of what is called “field underwriting” whenever someone is interested in insurance coverage, whether it is life, disability, or long-term care insurance. It is imperative we do our best to provide accurate quotes, so we don’t waste anyone’s time, nor portray a pie-in-the-sky premium rate scenario. It is our hope that you obtain the underwriting classification we assume up-front, or receive a better offer, which can save you money.
Below, is a visual representation of the different life insurance underwriting classifications for a non-tobacco user. Depending on the applicant’s age, the insurance carrier, the coverage amount, and the coverage period…the premium rate difference between each classification (i.e. Standard versus Standard Plus/Select) can vary quite a bit. It is not uncommon to see a 15-30% premium difference between classifications. This is one of the reasons why accurately quoting up-front is so crucial.
FIG-Life-Insurance-U_W-Classifications
