Understanding these categories can help you: • Predict your premium • Prepare for underwriting • Improve your rate before applying • Avoid overpaying for decades
For foundational context, see: • How Life Insurance Underwriting Really Works • How Term Life Insurance Premiums Are Calculated
What Are Rate Classes in Life Insurance? Rate classes (also called risk classes or underwriting classes) are categories insurers use to group applicants with similar risk levels. Each class has a different price. The healthier and lower-risk you are, the better the class — and the lower your premium. Here’s how the main categories break down.
1. Preferred Plus (Also Called “Super Preferred” or “Preferred Best”) This is the lowest-cost category. Only the healthiest ~5–10% of applicants qualify.
Who qualifies? You’ll typically need: • Excellent health • Ideal BMI • Perfect blood pressure • Perfect cholesterol • No tobacco or nicotine use • Clean prescription history • Clean driving record (0–1 minor violations) • No major family health history red flags • Strong medical exam results
Savings: Premiums can be 30–50% lower than Standard rates.
Best for: • Healthy non-smokers • Younger applicants • Fitness-conscious individuals
2. Preferred A step below Preferred Plus — still excellent rates, but slightly more forgiving.
Who qualifies? Typically someone who: • Has good — not perfect — health • Has slightly elevated BMI, blood pressure, or cholesterol • Has 1–2 minor medical conditions under control • Has no tobacco or nicotine use • Has a relatively clean driving record
Savings: Premiums are 15–30% lower than Standard.
Best for: • Most healthy adults • People who maintain regular medical care • Applicants with stable, well-managed health conditions
3. Standard Plus (Used by Some Insurers) Not all insurers offer this category, but when they do, it sits between Preferred and Standard.
Who qualifies? People who are generally healthy but don’t quite meet all Preferred criteria. Common reasons: • BMI slightly outside the ideal range • Mild blood pressure medication • Slightly elevated cholesterol • Past medical histories that require caution
Savings: Premiums are 5–10% lower than Standard.
4. Standard (The Most Common Category) This is the baseline pricing category used for applicants with average health.
Who qualifies? Typically someone who: • Has a few manageable medical conditions • Has a normal BMI (or slightly high) • May take several common medications • Has family history concerns • Has a few driving violations • Has no major lifestyle risks
Cost: Standard pricing is what most people expect when they see a basic online quote.
5. Substandard (Also Called “Table Ratings”) This category is for applicants whose health or lifestyle creates higher risk.
Who qualifies? People with: • Significant medical history • Chronic or unmanaged health issues • High BMI • Past or current tobacco or nicotine use • Risky hobbies (scuba diving, aviation, climbing) • Serious driving violations or DUI • Certain occupational hazards How Substandard pricing works: Substandard ratings are labeled as Table Ratings (Table A, B, C, etc.). Each table adds roughly 25% to the Standard rate.
Example: • Standard: $50/month • Table B (50% increase): $75/month • Table D (100% increase): $100/month
How Insurers Decide Your Rate Class Underwriters analyze several key health and lifestyle markers:
Health factors: • Blood pressure • Cholesterol • BMI • Glucose levels • Nicotine use • Medical exam results • Prescription history • Family health history
Lifestyle factors: • Driving record • Alcohol use • Occupation • High-risk hobbies • International travel to high-risk regions
Age: Your age sets the baseline, but your rate class determines the multiplier.
How to Improve Your Rate Class Before You Apply
1. Improve your biometrics Lose a few pounds, manage blood pressure, and monitor cholesterol.
2. Stop nicotine use After 12 months tobacco-free, many applicants qualify for Preferred rates.
3. Prepare for the medical exam Hydrate, rest, and avoid caffeine and salty foods.
4. Clean up your driving record Avoid violations for 2–3 years before applying if possible.
5. Compare multiple insurers Each company evaluates risks differently — saving you up to 40%.
6. Apply sooner rather than later Your age increases your premium every year — even if your health stays the same.
Final Thoughts: Knowing Your Rate Class Gives You Control Understanding the difference between Preferred, Standard, and Substandard classes empowers you to take control of both your application and your long-term financial planning. By improving your health metrics, preparing for underwriting, and comparing insurers, you can secure a lower rate — and protect your family more affordably.
Recommended Next Reads • How Medical Exams Affect Your Term Life Insurance Rates • Instant Term Life Insurance Quotes: What to Know Before You Apply