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The discussion on different health categories was particularly good - the first
time I have read such a comprehensive explanation, free of insurance lingo...
Your Parents Did It To You - Underwriting Guidelines
What Is A Super Preferred, Preferred and Standard Risk?
Below are some tables than can assist you in determining into what health category you fit. Life Insurance underwriting is like trying to hit a moving target that keeps changing direction. For example, a few years ago, underwriting high blood pressure was easy - no one received Preferred rates. Today, many taking blood pressure medication can get the best rate available from certain companies. Acid Reflux or high cholesterol medication used to hurt an insured's risk factors. Today, such medications are considered proactive. We're seeing those with Sleep Apnea get standard rates vs. a declination just a few years ago. The key is knowing what companies are aggressive in certain circumstances. If you have a health condition, you want to avoid picking the wrong company to insure you. One phone call to us (800-542-5530) can save you thousands of wasted dollars that could be used for something better (like buying gas).
Article continues directly below the quote screen...
Life insurance companies are becoming more interested in an insured's genetic makeup. At some point in our lives, we blame our parents for how we turned out. Your genetic makeup is something you can stick on them. Underwriters are looking more and more at family history in the evaluation process. Companies many times assume that if a family member has it, you're probably going to get it.
Family history relates to "immediate family members." That means your father, mother and any brothers or sisters. They especially look at problems occurring with a family member prior to the age of 60. If the family member experienced the problem after 60, you're probably in the clear.
The primary attention is focused on cardiac, cancer and diabetes (to a lesser degree) family histories. This is where it pays to talk with an experienced agent because it can bump you up or down as many as two spots on the underwriting guidelines chart.
Most companies use six general rating categories. These are:
Super Preferred No Nicotine (also called Preferred Plus)
Preferred No Nicotine
Standard No Nicotine
Preferred Nicotine
Standard Nicotine
Substandard.
Super Preferred No Nicotine risks refers to people who meet an insurer's strictest standards. Actuarial tables indicate that these will live the longest. The rates quoted on AmericaQuote include the Super Preferred and Preferred risk categories as well as Standard Plus and Standard. The Super Preferred category qualifies a person for the lowest policy rate.
As the owner of AmericaQuote, I want to throw my two cents in. The quote page is where it gets a little complicated. "The Company Policy Comparison" page (Instant Life Quote) is the heart of this web site. You can compare rates of America's top companies. It could just as easily be titled the "Don't Get Your Hopes Too High" page or even the "Great Disappointment" page. Here's why. It would be no problem at all for AmericaQuote to present comparisons of over 100 companies and their rates. We could present them to you and leave you to figure out which one is best suited to your circumstances. But, given too much detail, viewers are likely to go into "information overload." We have attempted to simplify this process - to give you the information you need and, hopefully, bring clarity to the complex world of underwriting life insurance.
There are many fine resources on the Internet for researching life insurance. Most list plans in order of premium, or cost. Obviously, the least expensive appear at the top. All too frequently, viewers jump at the least expensive plan; apply for it, only to find out two months later that they can't qualify medically for that rate. Then it's back to square one. This happens because of the new, and sometimes confusing, rating structure used by insurance companies. Our goal is to educate you, before picking a plan.
The Policy Rating System
At one time, the life insurance rating system was quite simple - non-smokers received non-smoker rates, smokers received smoker rates. Several years ago, companies introduced lower "Preferred" non-smoker and smoker rates for those in better health. Unfortunately, clients in good -- but not great -- health were forced to pay more (in most cases 50% more) because more restrictive underwriting dropped them into the "Standard" risk category. Rates went down for those in better health since they were bumped up to the "Preferred" category.
To complicate things still further, most companies added a "Super Preferred" rate (only for non-nicotine users) in addition to the four previously mentioned. Personally, I call this newest addition the "Bionic Rate" because of its stringent health qualifications. It is with reluctance that the "Super Preferred" rates are listed on our site. It would be preferable -- and more realistic -- for you to make a policy selection based on the regular "Preferred" or "Standard" rates than to assume that our potential clients are also perfect specimens.
True, the lowest rates offered today are these "Super Preferred" rates. However, please understand when comparing policies is that even if you're in very good health, there is a good chance you won't qualify for the best rates. In fact, only about 25% of all applicants get this "Super Preferred" rate. About 60% can qualify for the "Preferred" rate and the rest fall in the "Standard" or below category. Even so, we'd prefer you to get the facts now -- rather than be disappointed later. We've listed very general requirements below for each category to determine where you fit.
When you go to the rates page, notice there are listings for 10, 15 and 20-year and longer rate guarantee plans. There are four health categories quoted too. They are Super Preferred, Preferred, Standard Plus and Standard for each company plan.
About the Rates
All companies listed are compared on initial guaranteed rates. This is not considered to be a complete comparison proposal since it lacks renewal rates. You can print the comparison file or save it on your computer for your future study and reference. For additional information on any particular company, please call or e-mail us.
Life insurance was simpler twenty years ago, when we had only "smoker" and "non-smoker" rates. The rate books for term were two pages. Today, you need to have an MD degree and a computer to quote someone accurately. This is something viewers need to pay particular attention to when comparing quotes.
Standard Risks
Standard risks refer to persons who have had some minor health impairments in their lifetime. An example of Standard risk would be someone taking medication for high blood pressure, or a borderline diabetic. In some cases, we have been able to get better rates for those with very well controlled high blood pressure.
Substandard risks refer to persons who are having more than minor health problems. Companies charge them additional premiums depending on the risk factors involved.
Just who qualifies as a Super Preferred, Preferred or Standard risk varies from company to company. Insurance underwriting is not an exact science. Although much of the underwriting is done by computer based on a "point" system, sometimes it's simply a judgment call. Below is a partial list of general indicators that may be used to determine a risk. Please understand that these are not all the requirements but a general guide. An underwriter may add further requirements depending on the case. On the quote page, you can view individual company requirements.
As I mentioned above, a family history of cancer (internal or otherwise) or heart disease, doesn't necessarily exclude one from the best rates. Some companies are more proactive than others. Knowing which ones for any specific situation is key. Most companies will look past a basal cell carcinoma or other minor skin cancers.
Here are some very general guidelines. Don't use these as gospel as underwriting guidelines are a moving target. It depends on a lot of factors. Occasionally, we find applicants that meet the requirements below but when combined with other factors get a lower health category. There are several factors not listed below and can negatively affect your situation. Although I've covered this in a previous section, it's important to talk with an experienced licensed agent in your state.
If you see an "(*)" in any column, that means there are exceptions to the general rule - please call for specific details.
| Category | Super Preferred | Preferred | Standard |
|---|---|---|---|
|
Blood Pressure |
No current or history of blood pressure treatment (*) |
No current or history of blood pressure treatment (*) |
Currently controlled |
|
Blood Pressure Readings |
No current or history of blood pressure readings in excess of: 140/85 Age 60 or younger 150/90 Age 61 or older |
No current or history of blood pressure readings in excess of: 140/90 Age 60 or younger 150/90 Age 61 or older |
Average readings in the past 2 years does not exceed: 155/95 Age 60 or younger 160/95 Age 61 or older |
|
Family History |
No cardiovascular disease or internal Cancer in either parent or siblings before age 60 (*) |
No cardiovascular or internal Cancer death in either parent before age 60 (*) |
Not more than one cardiovascular or Cancer death in parents before age 60 (*) |
| Category | Super Preferred | Preferred | Standard |
|
Driving History |
Not more than 1 moving violation in the last 2 years. No DUI in the past 5 years (*) |
Not more than 1 moving violation in the last 2 years. No DUI in the past 5 years (*) |
Not more than 1 moving violation in the last 2 years. No DUI in the past 2 years (*) |
| Nicotine |
Usually 5 years no nicotine (*) |
Usually 3 years no nicotine (*) |
Usually 1 year no nicotine (*) |
| Cholesterol |
210-240 (depending on rest of health history) |
250-270 (depending on rest of health history) |
Under 300 |
|
Cholesterol/ HDL Ratio |
Cannot exceed 5.0 | Cannot exceed 6.0 | Cannot exceed 8.0 |
|
Alcohol/ Substance Abuse |
No alcohol or substance abuse history |
No alcohol or substance abuse in past 10 years |
No alcohol or substance abuse in past 7 years |
| Category | Super Preferred | Preferred | Standard |
|
Cancer History |
No cancer history (except certain skin cancers) |
No cancer history (except certain skin cancers) |
No cancer history (except certain skin cancers) |
| Aviation |
Private pilots will have extra premium or exclusion |
Private pilots will have extra premium or exclusion |
Private pilots may have extra premium or exclusion |
| Avocation |
Available, possible extra premium depending on avocation |
Available, possible extra premium depending on avocation |
Available, possible extra premium depending on avocation |
Below are some general weight tables. These are only a part of the process and are considered with other factors. Some company's tables are more liberal, other less. When you get a quote, if weight is an issue, use the "Health Analyzer."
In the Standard rate category, we have some flexibility. Here's an example: if everything else is good, a male who is 5'10" and 270 lbs. can get Standard rates.
| Height |
Weight Super Preferred (Male) |
Weight Super Preferred (Female) |
Weight Preferred Male/ Female |
Weight Standard Male/ Female(*) |
|---|---|---|---|---|
| 5' 0" | 145 | 130 | 161 | 189 |
| 5' 1" | 149 | 133 | 165 | 193 |
| 5' 2" | 153 | 135 | 170 | 197 |
| 5' 3" | 158 | 138 | 175 | 204 |
| 5' 4" | 162 | 140 | 180 | 209 |
| 5' 5" | 166 | 143 | 185 | 215 |
| 5' 6" | 170 | 145 | 190 | 220 |
| 5' 7" | 176 | 150 | 195 | 225 |
| Height |
Weight Super Preferred (Male) |
Weight Super Preferred (Female) |
Weight Preferred Male/ Female |
Weight Standard Male/ Female |
| 5' 8" | 182 | 155 | 200 | 230 |
| 5' 9" | 188 | 160 | 205 | 235 |
| 5' 10" | 193 | 165 | 210 | 242 |
| 5' 11" | 199 | 170 | 216 | 251 |
| 6' 0" | 205 | 175 | 222 | 256 |
| 6' 1" | 211 | 179 | 229 | 263 |
| 6' 2" | 216 | 183 | 236 | 271 |
| 6' 3" | 222 | 188 | 243 | 279 |
| Height |
Weight Super Preferred (Male) |
Weight Super Preferred (Female) |
Weight Preferred Male/ Female |
Weight Standard Male/ Female |
| 6' 4" | 227 | 192 | 250 | 286 |
| 6' 5" | 233 | 196 | 257 | 293 |
| 6' 6" | 238 | 200 | 264 | 300 |
| 6' 7" | 243 | 204 | 272 | 307 |
| 6' 8" | 249 | 209 | 280 | 316 |
| 6' 9" | 254 | 213 | 288 | 325 |
| 6' 10" | 260 | 217 | 296 | 333 |
| 6' 11" | 265 | 221 | 305 | 341 |
We think it's important for you to know as much as possible about what insurance companies are taking into consideration as they evaluate potential policyholders. In short, to qualify for the Preferred rate, you need to be in excellent health (though it never hurts to apply). However, in the application process, anything can happen -- especially in the area of Substandard risks. This is by far the least predictable area in underwriting.
If your health is not good, AmericaQuote can "shop" your condition with several companies. A number of companies specialize in specific health conditions. It has been our experience that such clients may be offered Standard rates by one company and extremely high premiums from another. In general, we have seen the best offers from highly rated smaller companies. These are companies that have the same financial stability as the larger ones, but are smaller in terms of assets. These avoid competing with the major carriers for the best risks but have carved out a specialty niche. This is especially true in heart or diabetes cases and those with cancer histories.
Questions? Comments? 1-800-542-5530