Preferred Health Categories Explained
So what's the deal with so many health categories?
Which one of those will you fall into:
- preferred plus - non-smoker
- preferred - non- smoker
-regular - non-smoker
- preferred -smoker
- regular - smoker
Let me start by saying that I don't know, and neither do you or the insurance company, at least not at this moment. In order for you to find out for sure, you will need to see the nurse and do the medical, with full blood work and answer a whole lot of questions that she will ask in regards to your health, and your immediate family's medical history.
Statistically speaking, even though it is a little different depending on the Insurance Company, the majority of applicants will end up getting the regular rate. That's just the way it is, we have to realize that most people are just in average health. Keep in mind that a few years ago, there wasn't any preferred health categories, and everyone was just either a smoker or non smoker.
Only about 10-15 years ago , some companies, to be more competitive started introducing better rates for who they consider to be better risk applicants. Today, most companies have preferred underwriting, and it makes sense to try to get a preferred health rate for life insurance, as you will save a lot of money over the course of the term of the life policy.
I just hate to see people get disappointed when they don't qualify for the preferred rate (remember, only about 30% of applicants qualify). So they always ask me, what is wrong with them, and they get all worried whether they have some sort of health problem or something..when in fact they are perfectly normal.
Sometimes you can even be in perfect shape in every way, but because of an immediate family member, such as parent or sibling, you could be prevented from receiving a preferred rate, not because of your health, but because of theirs. I know it doesn't seem fair, but remember that the life insurance companies go by statistics and risk management, and it's all a numbers game for them.
So bottom line, with all that being said, most people have a pretty good shot at getting a preferred rate. The secret is to apply with the right company, as all of them have different criteria. This is where we come in.
At the Life Insurance Quote Shop, our brokers have experience with all the insurance companies, and by asking you a few questions, will be able to recommend to you which insurer will be liekly to give you a preferred rate. On the other hand, if we think that you have no chance at getting a preferred rate, we might be able to save you jumping through all the hoops, and may be able to give you a simplified application, that may not require a whole lot of questions, or giving blood etc...
So pelase do not hesitate to call us at 1-866-446-4887 and speak to a live broker to get some advise.