Term Life insurance premiums are subject to medical underwriting. That means the younger and healthier you are, the cheaper your rates will be. Preferred rates are the lowest available and bestowed upon people in the optimum health. Everyone else falls into the “standard’ rate category. While the rates and criteria vary from life insurance company to life insurance company, in general: Preferred Life Insurance Rate –To obtain “preferred” status you must be in excellent overall health. You may not participate in any hazardous activities and you cannot have a history of drug or alcohol abuse. Standard Term Life Insurance Rate – Standard rates apply to most of us – that is persons who have had some minor health problems in the past, or some current lifestyle issues such as elevated cholesterol levels or being 50 pounds overweight.
Some life insurance companies offer a Preferred-Plus life Insurance Rate. To obtain this “rock bottom” rate, you cannot use any tobacco products whatsoever You cannot have a history of drug or alcohol abuse, and you cannot engage in any hazardous activities. Statistically these people are those who are likely to live the longest, and therefore are entitled to the best rates.
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