Which risk classification is used by underwriters for life insurance?

Underwriters use the "Standard" risk classification as a baseline when evaluating applicants for life insurance. This classification encompasses individuals who are deemed to have an average level of health and risk factors based on societal norms. The Standard classification serves as a reference point against which other risk levels are measured.

When an applicant fits into the Standard category, they are considered to present a typical risk for insurance purposes, which generally means that their premiums will be set at average rates. If an applicant exhibits health conditions or lifestyle choices that increase their risk, they may be categorized as "Poor," which denotes a higher likelihood of health issues and potentially higher premiums. Conversely, an individual in the "Excellent" classification would be even less risky than Standard, suggesting they lead an extremely healthy lifestyle or have exceptional health metrics, often resulting in lower premiums.

Therefore, the Standard classification is vital for underwriters, as it assists them in making informed decisions about setting premium rates and determining the overall coverage provided to applicants based on their perceived risk level.