Qualifying for Preferred Risk & Preferred Plus
It is the life insurance underwriter’s job to use all of the information gathered from various sources to determine whether to accept a particular applicant as a life insurance risk. The most favorable and affordable ratings are Preferred risk and Select Preferred. Qualifying for preferred risk ratings is reserved only for the healthiest of individuals. Please note that most people do not qualify for preferred ratings.
To qualify the potential insured should have excellent health and no adverse medical history and not be on medication for any condition. There should be no personal or family history of diseases such as cancer, diabetes, or other health conditions.
Someone who would not qualify for a “preferred select” rating (the best rate available) might still qualify for a “preferred rating.” For example, you could qualify for all the factors needed but if you had an immediate family member that had heart disease prior to age 60 this factor alone would move you to the preferred rating status.
Your life insurance premium would then be slightly higher. Another life insurance company might only move you to a preferred vs a preferred select rating if that individual had died. There are several factors looked at and each life insurance company looks at the factors differently.
- An ideal weight for their height and a body mass index of 18.5 to 25
- Excellent health history
- An immediate family history with no heart disease or internal cancer before the age of 60
- Has never smoked tobacco or has quit for at least five years.
- Does not participate in hazardous activities or high-risk behaviors
- Does not have a hazardous occupation
- No recent bankruptcy
- Must have a clean driving record with few moving violations and no DUI’s or reckless driving
- Must never have been treated for drug or alcohol abuse.
Clearly, the preferred category is the most stringent of the underwriting risk categories, and it is awarded to applicants who are expected to live the longest. It is estimated that only 10% or less of the U.S. population qualifies for a preferred risk rate.
Risk categories are constantly evolving. A few years ago, life insurance applicants with high blood pressure would not qualify for a preferred risk rating. Now, when hypertension is controlled, applicants can be classified as preferred risks (assuming they meet the other preferred risk underwriting criteria). Similarly, in the past, an applicant’s use of cholesterol medication negatively and severely impacted his or her risk classification.
Today, some insurance companies view taking such medication as proactive and, as long as cholesterol levels are within normal range, an applicant can be rated at a preferred risk as long as they meet other preferred underwriting criteria.
Avoid Captive Agents
A captive agent is just that, captive! They must offer only products from the company that has “captured” them. Unfortunately, this limits your choices in finding the best company that fits your situation and qualifying for preferred risk. Many larger agencies that always advertise also only represent a handful of companies. The key to finding the best term life is to use an agency that represents multiple term life insurance carriers.
Why use Stahan Financial Services
- We are independent and not obligated to recommend specific insurance companies
- Our process is quick and efficient
- We can find the lowest cost policy for your uniques medical background and family history
- We only quote rates guaranteed for the full term of the policy and convertible
- Our quote is 90% of the time your actual cost
- We represent only the top 1% of the oldest and finest companies with a rating of “A” or better
- We are knowledgeable and professional
- We are customer-driven and will earn your business
- We will deliver beyond your expectations
We work with a team of highly talented individuals committed to providing you with unmatched professional service with over 250 years of combined experience.