If there was ever a good topic of discussion concerning applying for life insurance, rate classes should be at the top of the list. Your rate class has a major impact on your premium. This usually starts out with consumers navigating from one life insurance website to another and running the quoting engines and reviewing rates and plan designs that they do not understand.
The first thing to remember is the fact that all life insurance rates are regulated by law and never vary from one agent to another.
Even purchasing life insurance directly from a carrier will reflect the same exact premiums.
About 95% of the time when consumers are comparing rates on a website quote engine they are using the default quote engine setting of Preferred Plus also known as Super Preferred which in most cases would be a rate class they may not qualify for. Understanding these rate classifications will make you a smarter insurance shopper and help you receive a lower premium after you purchase a plan.
A large percentage of consumers will blindly travel from one website to another looking at life insurance quotes but never apply.
One of the most common reasons why consumers never apply is they get more confused with every website they visit. Before you know it they throw the towel in and give up. When this happens, the intended beneficiaries who are the ones that really need this life insurance will not be protected in case tragedy strikes. Let’s take a look at the basic rate classifications and get an understanding of what they mean;
*Preferred Best Non-Tobacco
*Standard Plus Non-Tobacco
There can also be a Standard Non- Tobacco classification with a Table Rating.
These Ratings are identified by the Numbers 1-10 or Letters A-J.
Tobacco Classifications are;
One important concept to remember is the prerequisites can vary from one life insurance company to another. To eliminate confusion, I will give you a basic idea what to expect from each of these rate classes.
The Non-Tobacco classes start out with the very best rating which is Preferred Best Non-Tobacco otherwise known as Super Preferred. With this rate class, everything has to be right on the money as far as height and weight within Super Preferred specifications as set by the carrier, no prescription medication taken and no health conditions.
If you are looking for low cost life insurance, this is the best class to qualify for if possible. Also taken into consideration is your occupation, involved sports, driving record and parents basic health concerns relative to parents health history. About 10% of the applicants can qualify for a Super Preferred rate class.
Preferred Non-Tobacco rate classes give you more leeway where your height and weight are not quite as stringent and you can use prescription drugs for certain medical conditions but these conditions have to be easily controlled.
Standard Plus and Standard rate classes are for applicants with some health conditions and medication use which are going to be more of a concern than the preferred classes.
Standard rated class with a table rating would be for applicants with more serious conditions or multiple conditions using medication to control the medical issues.
Preferred Tobacco and Standard Tobacco are rate classes used for tobacco users and tobacco users with medical conditions.
It is difficult to go into specifics about each rate class because the classes as I mentioned before are interpreted differently by the life insurance companies in question. Also keep in mind that the complete underwriting process has to be completed to know exactly what rate class you will be assigned and this is determined by the life insurance companies underwriting department.
To eliminate all of mysteries of life insurance rate classes and how to qualify for them is very simple, contact a life insurance agent for assistance. They are ready to help you at no cost or obligation. Finding the most affordable Term life insurance is a simple process when you have the experience. With people living longer than before the market for low cost Term life insurance is just about endless.
An experienced life insurance agent can point you in the right direction and find the best life insurance product for your needs and budget within a matter of minutes.
Our quoting system can display life insurance quotes from over 40 A+ rated life insurance companies side by side in less than a minute. Term life insurance quotes will be the lowest and then followed by the permanent plan designs such as Universal life insurance and Whole life. Universal life insurance is designed to last the rest of your life and never terminate by any time limits like Term life insurance. If you need help in determining how much you face amount should be you can use our face amount calculator to help you.
The best way to find out what your life insurance rate class should be is by receiving a medical pre-screen to eliminate any surprises later.
All life insurance agents can pre-screen your specific information to help you find the best rate class and company for your needs and budget. Purchasing life insurance should always be a smooth process when you have the help of an experienced life insurance professional on your side. Trying to research modern life insurance plans can be very confusing if you are trying to do it alone.
The best part is the help of a life insurance agent is totally free of cost. Feel free to contact us 7 days a week and let us show you how simple it is to purchase the best Term life insurance at the lowest possible cost. Thank you for reading our blog post Understanding Life Insurance Rate Classifications.