Multiple rate classes make it difficult to quickly or easily calculate the cost of life insurance premiums. Since there are four rate classes – Preferred Best, Preferred, Standard Plus and Standard – and two rate classes for smokers (Preferred Smoker and Standard Smoker), these variables can produce very different outcomes regarding the price of life insurance.
For example: Besides the Standard rate classes, there are Substandard rates that make it even more challenging to approximate the price of life insurance. These Substandard rates are for men and women with preexisting medical conditions who want to buy life insurance, but may have to pay a surcharge because their particular ailments make them a higher risk to insure.
If you have a preexisting condition, you can still find out if you qualify to buy life insurance; you can learn about the underwriting guidelines, as well as the best and worst case scenarios associated with a rate class, by reading the material on our page about High Risk factors.
Each rate class offers a different price for the same life insurance policy. If you are not familiar with what a rate class is, you should have an independent life insurance professional – someone with extensive experience – explain this subject to you before you even apply to buy life insurance. After all, your rate class is the single greatest factor that will determine how much you pay for life insurance. You can learn more about rate class here.