Facts on Preferred and Standard Rates

Facts on Preferred and Standard Rates

Companies offering life insurance in Canada charge varying rates, either preferred or standard, and this can be quite confusing for those who are looking to buy life insurance. Determining whether you qualify for the preferred rates, which are lower than the standard rates, can be tricky. The amount of money that a policyholder with preferred rates pays is going to be much less than that of someone who has standard rates. Even though determining where you stand on your own is difficult, and only the company you choose is going to be able to determine if you qualify, you can consider some of the variables that will factor into the decision.

If you are a tobacco user, you will find that you aren’t going to be able to qualify for preferred rates. Because the instance of health problems and death related to tobacco use are so high, the companies can’t afford to provide these individuals with better rates. Of course, smoking isn’t the only factor that will cause you not to qualify for those preferred rates. Here are a few of the other things that your insurance company is going to consider when determining your rates.

Those who are overweight will have problems trying to get preferred rates. Other health issues, such as high blood pressure and high cholesterol will disqualify you from receiving preferred rates as well. Similar to smoking, these health issues are putting you at a greater risk. Your family health history can be cause of concern as well. More than just health issues determine your rates though. Your driving record, the amount that you travel (and where you travel), and even your occupation can be grounds for not receiving preferred rates. Those who engage in particularly dangerous pastimes, such as skydiving, can also find higher rates.

You should also keep in mind that if you are looking for a permanent life insurance plan, one of those life insurance plans that doesn’t increase in cost over time, you may not be able to get preferred rates. If they do, the difference in the cost is likely to be minor.

When you are trying to determine if you qualify for preferred or standard rates, use a quality Ontario based insurance broker to help you. He or she will be able to provide you with more information on the variables that will change the rates for your life insurance policies.

We at YourInsuranceGuy.ca are experts in explaining the the various types of life insurance that could protect the entire family. Please feel free to contact us at aman@yourinsuranceguy.ca or at 1 416 509 2540. Please visit us for a no obligation quote or advice.

 

 

Preferred and Elite Rates in Life Insurance

Preferred and Elite Insurance rates are actually discounted rates that reduce your insurance rates from standard rates. People get entitled to these rates upon having a very good health and also a clear family medical history. The underwriting process in tha application stage identifies whether the rates are standard, preferred or elite. Some insurance companies apply preferred and elite rates, upon approval, only beyond certain face amounts, i.e $applied only beyond $200,000.00 of coverage.

Prepared by:  Aman Kapur

 

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