Factors for Life Insurance

What is a life insurance rate class?

A rate class is a way for life insurance companies to categorize you based on your health and lifestyle choices. Depending on these criteria, you will be assigned into a rate class. Better rate classes usually end up paying lower premiums.

Examples:

• Preferred Elite:
  • Excellent overall health (has blood pressure, cholesterol, etc. within normal range)
  • No medical conditions or chronic illnesses
  • Never used tobacco or have quit 3-5 years ago
  • No history of drug or alcohol abuse
  • Not engaged in hazardous activities
  • No family history of death due to cancer or heart disease prior to age 60
• Preferred:
  • In good health (blood pressure, cholesterol, weight may be slightly abnormal)
  • Can be on medications for high blood pressure or high cholesterol
  • No participation in hazardous activities
  • Clean substance use history (at least 1 year tobacco-free, some companies may require longer durations without tobacco use)
• Standard:
  • Have relatively minor health problems and abnormal lab values such as untreated high cholesterol, asthma, or those who are clinically overweight
  • Has clean driving record for last 3 years (No DUI, reckless operation, or license revocation/suspension)
  • May have had a history of tobacco use or alcohol abuse with abstinence for 12 months or greater
• Preferred/Standard Smoker:
  • Same criteria as Preferred or Standard rate class, with the exception that an individual has used tobacco products within the last 12 months
• Substandard:
  • May have major health problems such as HIV/AIDS, cancer, heart disease, or obesity
  • May be currently using tobacco or have other substance use disorders

Do I still qualify for life insurance if I use or smoke tobacco?

You still can qualify for life insurance; however, premiums for policies that cover tobacco users are usually more expensive than those policies that cover non-smokers.

To qualify as a non-smoker, companies may require you to be tobacco-free for a minimum of one year, with some companies requiring longer abstinence periods.

Some companies may be lenient and will not leverage a higher premium if you only use chewing tobacco or smoke cigars on occasion.

Can I qualify for life insurance if I am in poor health?

Getting a medical exam done by a licensed doctor is one of the prerequisites to qualifying for most types of life insurance. If your health is not so great, don’t fret, it is still possible to qualify for life insurance. Just remember that you will paying a higher premium than if you were in better health.

There are also types of life insurance that do not require a medical exam. These may provide less coverage and be more expensive than traditional term or permanent life insurance policies.

If I am not a U.S. citizen, can I get life insurance?

Only if you have a green card and have been a permanent resident of the United States of America for a minimum of one year may you qualify for life insurance through most insurance companies.

Can my life insurance policy be cancelled because of health reasons?

A life insurance contract is binding (unless there are stipulations in the contract stating otherwise) and can not be cancelled due to a sudden change in health status.

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