The cost of life insurance will vary for each person across the different companies. Many companies offer competitive rates, but each one does vary on how favorable or unfavorable a person may seem to insure. Insurance companies use 3 basic categories to classify and rate the levels of risk associated with insuring an individual.
Here is a quick glance at how the insurance companies consider different people and how they determine the risk level.
3 Levels of Preferred Life Insurance Risk Categories
Preferred Plus – This is the category assigned to very healthy people who are considered to be in excellent health, and lead an active lifestyle. To be in this classification, your stature and weight must both be well balanced. Any lab tests must also all show that your health is in good standing. You can’t have any major ailment, or be taking certain types of medications. In addition, you can’t have any close family members who passed away from illnesses like cancer, or heart disease before they turned 60 years old.
Preferred – You can be considered in this range, even if you’re somewhat overweight. You can still qualify regardless of whether you’re being treated for high blood pressure or you have some challenges with your cholesterol levels. Overall you still need to be in moderate health and not have any major illnesses.
Preferred Smoker – Each company varies slightly on this specific category, but if you have only been using tobacco for a year, or a very short amount of time, you may fall into this category. It is to the discretion of the individual company whether this may be available or not.
3 Levels of Standard Life Insurance Risk Class Ratings
Standard Plus – You’re still in better health than the majority of people, and are generally not visiting the doctor frequently.
Standard – This is the place where the majority of people fall. Being overweight is generally the biggest factor of going from preferred to standard. Generally in this classification, you still have a relatively average life expectancy, but you probably have also developed some minor health conditions over the years. If you have had a parent who passed away due to heart disease or cancer before age 60, you’re more than likely in this class, as well.
Standard Smoker – You’d meet all requirements for standard classification if you were not a tobacco user.
High Risk Life Insurance Rating Classification
Substandard – This is the class assigned to individuals who are considered high risk. If you have major health problems, are obese, or take a large amount of medications, you are probably in this category.
This is an example of what you can expect to pay based on your age, assuming that you are relatively healthy.
35 years of age or less– Close to $30 every month.
40 years of age – Between $30 and $40 every month.
45 years of age – Around $50 each month.
50 years of age – About $75 per month.
55 years of age – Close to $120 every month.
60 years of age – Around $200 each month.
65 years of age – About or over $350 each month.
Your risk category, health problems, and how long the term policy is set for will give you different rates, please keep in mind these are general estimates. In addition, there are also other life insurance policies available that are called final expense or burial insurance that are much more affordable for seniors.
Life insurance is possible even if you have serious health issues
If you have health problems we can understand how you could easily get discouraged or feel like you will not be able to qualify for coverage. Every month we help many people from all walks of life and we feel confident we can help you no matter what your difficulty might face. We help people who have diabetes, are obese, are in early stages of cancer, have high blood pressure or are over the age of 65. None of these issues can prevent you from buying life insurance, some options may be limited and there could be limits on your coverage, but we feel confident that we can help anyone find coverage.
Contact us here for specific questions about your conditions and what rates you can expect.