What is the difference between “standard”, “preferred”, and “preferred-plus” term life insurance rates?
You need to understand that when comparing term life insurance rates, even if you’re in excellent health, there is a good chance you won’t qualify for the lowest term life insurance rate. In fact, only 5%-40% of all applicants get this “preferred-plus” term life insurance rate. Typically, about 60% can qualify for the regular “preferred” term life insurance rate. The rest fall into the “standard” category, or worse. Let’s take a look at the criteria for each category. • Preferred Term Life Insurance Rate – Although the qualifications for obtaining the ‘preferred’; term life insurance rate vary between companies, generally you must be in excellent overall health. There can be no participation in any hazardous activities and there must be no history of drug or alcohol abuse. • Preferred-Plus Term Life Insurance Rate – In order to qualify for the ‘preferred-plus’; term life insurance rate, you cannot use tobacco in any form. You must have no history of drug or alcohol abuse, and you canno
