Insurance

Insurance To invest is to insure

10/23/2025

Underwriting Trends for comparison

1. Policygenius Life Insurance Price Index
2. QuickQuote Rate Comparison Chart
3. SelectQuote Rate Breakdown
4. Ramsey Solutions Term Life Rate Chart
5. AffordableLifeUSA Rate Charts

10/23/2025

Improving Your Classification

1. Apply early to lock in lower age-based rates.

2. Manage health conditions proactively

3. Quit smoking (12 months to 5 years tobacco-free for best rates)

4. Reapply for reconsideration if health improves after policy starts

10/23/2025

1. Premiums vary significantly by classification.

a.

For example, a 35-year-old woman seeking a $500,000, 30-year term policy might pay:

i. Preferred Plus $28.02/month
ii. Standard $53.02/month
iii. Standard Smoker $134.04/month

10/23/2025

Six Main Health Classifications

1. Here's a concise summary of the Policygenius.

a.

Article on life insurance health classifications:

i. What Are Life Insurance Health Classifications?

2. Life insurance health classifications are used by insurers to assess your risk level and determine your premium rates. These classifications are based on factors like your health history, lifestyle, family medical background, and habits such as smoking or drinking.

3. The Six Main Health Classifications and index values

a.

Description Typical BMI Range:

i. Preferred Plus Lowest premiums
ii. Excellent health, ideal BMI, no major family health issues 18–29
iii. Preferred Very good health; minor conditions allowed, limited family health issues 30–31
iv. Standard Plus Good health; mild conditions, one family death from heart disease/cancer 32–33
v. Standard Moderate health; chronic conditions, multiple family deaths, past smoking 34–38 Table Ratings Higher risk; serious health issues or high BMI (Table 1–10)41–48
vi. To***co/Smoker
To***co use in past 12 months; premiums up to 3x higher Varies

10/23/2025

1. Factors That Influence Classification

a.

Health status:

i. Medical exams, prescription history, and physician statements

b.

Height & weight:

i. Evaluated using insurer-specific build tables

c.

To***co/nicotine use:

i. Even occasional use affects rates

d.

Alcohol/drug use:

i. Recovery status and history matter

e.

Family history:

i. Heart disease or cancer in immediate family lowers rating

f.

Lifestyle:

i. Risky hobbies, driving record, and occupation

g.

Criminal history:

i. Felonies or recent parole may limit rating

10/23/2025

1. Your life insurance classification determines the rates you'll pay for your life insurance policy. After you apply for a policy, the insurance company will review all of your materials in
underwriting, then assign you a risk class based on your health, build, family health history, hobbies, and occupation.

2. Life insurance companies generally use six health classifications to determine your premiums. However, each company assigns those classifications differently, which is why it's so important to compare insurance quotes to find your best rate.

3. Life insurance classifications reflect how risky you are to insure and determine how much you pay for coverage.

4. The classifications are Preferred Plus, Preferred, Standard Plus, Standard, Table Ratings (Table 2, Table 3, etc.), and To***co/Smoker Ratings.

5. People in Preferred Plus classifications get the lowest rates.

What are the different health classifications?

6. There are six life insurance health classifications:

*Preferred Plus

*Preferred

*Standard Plus

*Standard

*Table ratings (table 2, table 3, etc.)

*To***co/Smoker ratings

10/23/2025

1. Great choice for a classic setup for final expense or burial insurance, which is often structured as a Whole Life policy with modest coverage like $25,000.

a.

Here is an example of a Whole Life Rate for Age 67, $25,000 Coverage. Premiums might look like for a healthy 67-year-old:

i. Standard WholeLife policy for a male Monthly Premium for a (Non-Smoker) Policy Type is $110–$140
ii. Standard Whole Life for a Female $90–$120
iii. Either $130–$180 Guaranteed Issue (no medical questions)

b.

Key Factors That Influence Your Rate Health status:

i. Better health = lower premiums.
ii. Gender =Women typically pay less due to longer life expectancy.

c.

Underwriting type:

i. Guaranteed issue policies cost more but skip medical exams.

d.

State of residence:

i. Rates can vary slightly by location.

e.

Compare index numbers meaningfully:

i. Look at cost per $1,000 of coverage.
ii. Compare cash value growth and dividend potential if applicable.
iii. Evaluate policy fees and riders (e.g., accelerated death benefit).

10/23/2025

Quote Comparison Underwriting

1. Type of policy you're considering (e.g., term life, whole life, universal life)

a.

Age of the individual

b.

Coverage amount you’re looking at

c.

Any specific companies or quotes you've already received (optional).

10/23/2025

1. There is no one-size-fits-all when it comes to insurance pricing. To compare index numbers based on policy type, age, and coverage amount, you’ll want to use resources that break down real-time or average rates across multiple insurers.

a.

Here are a few solid options:

i. Policygenius Life Insurance Price Index Offers monthly updates on life insurance pricing trends.
ii. Uses real-time rate data from multiple insurers.
iii. Allows filtering by policy type, age, and coverage amount.

2. QuickQuote Rate Comparison Chart
Displays sample rates for term life insurance by age and gender. Includes comparisons across different coverage amounts. Helpful for seeing how rates shift as age increases.

3. SelectQuote Rate Breakdown
Explains how rates vary by policy type and age. Offers insights into underwriting factors and cost drivers. Good for understanding the logic behind pricing.

4. Ramsey Solutions Term Life Rate Chart Provides a clear chart of average term life rates by age. Useful for quick comparisons and planning.

5. AffordableLifeUSA Rate Charts Offers sample rates by age and typical insurance needs. Includes guidance for different life stages.

07/25/2025

UNIFORM SIMULTANEOUS DEATH ACT

1. When it cannot be determined whether an insured or a primary beneficiary died first-a result that might occur in a fatal automobile accident in which both are killed, for example- the insurer must determine who died first to ensure that the proceeds go to the appropriate beneficiary.

2. To clear up this problem, most states have adopted the uniform simultaneous death act. This states that if the insured and the primary beneficiary diet at the same time, and no proof exists that the beneficiary outlived the insurance, the proceeds are paid as if the primary beneficiary had died first.

3. Some states have enacted laws that take this act a step further, even if it's clear that the beneficiary did not die before the insured. These laws specify how long the beneficiary must outlive the insured for the proceeds to be paid to the beneficiaries estate. For example, in certain states, the required survival is (120 hours) of the insured, the insured is still presumed to have died last. As a result, the policies proceeds are paid to a contingent beneficiary or to the insured's estate.

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