What is a life insurance rate class and why is it so important?

If you’re trying to determine how much your life insurance coverage will cost, you may have come across the term ” life insurance rate class or health ratings.”

A life insurance rate class is that it is a way of coming up with how much risk an applicant for coverage will pose to an insurance company, and in turn, how much to charge in premium.

Whenever anyone applies for life insurance coverage, the insurance company wants to know just how much risk it may be taking on if they approve the applicant for a policy.

There are a number of different parameters that go into the pricing of life insurance. These include the type and the amount of coverage that is being applied for.

In addition, because life insurance rates are also determined in large part on a person’s anticipated life expectancy, an applicant’s age, gender, height and weight, and overall health are typically also considered.

Learn more: See insurance height and weight charts

Likewise, life insurance companies will factor in other details, too, such as whether or not the applicant is a smoker, and whether he or she participates in “risky” activities, such as rock climbing or scuba diving.

If your health is bad a company can offer a rated policy life insurance premium w