What Is Preferred Plus Life Insurance?

Life insurance provides financial security for your loved ones. It offers a payout, known as a death benefit, to your designated beneficiaries, helping them manage financial needs. The cost of this coverage, known as the premium, is directly influenced by the level of risk an insurance company perceives in insuring you. Among the various risk classifications, “Preferred Plus” represents the most favorable category, indicating the lowest perceived risk. This classification typically leads to the lowest available premiums, making it a desirable status for applicants.

Life Insurance Health Classifications

Life insurance companies categorize applicants based on their health and lifestyle to assess the risk of providing coverage. This system of health classifications directly influences the premium rates policyholders pay. The classifications typically range across a spectrum, from the healthiest individuals to those with significant health concerns. Common classifications include Preferred Plus, Preferred, Standard Plus, and Standard, with additional categories like Substandard or Rated classes for higher-risk applicants. Each insurer may use slightly different names for these categories, such as “Super Preferred” or “Preferred Best,” but the underlying principles remain consistent. Preferred Plus stands as the top tier, reserved for individuals who present the lowest risk to the insurer.

Criteria for Preferred Plus Status

Achieving Preferred Plus status requires meeting a stringent set of criteria that demonstrate excellent health and a low-risk lifestyle. Applicants must generally exhibit overall excellent health with no significant medical history of severe conditions like heart disease, cancer, or diabetes. Ideal blood pressure and cholesterol levels are typically required, often without the need for medication to control them. There should also be no history of stroke or heart attack.

Lifestyle factors are also heavily weighed. Applicants must typically be non-smokers, often requiring no tobacco or nicotine product use for a significant period, such as five years or more. A history of drug or alcohol abuse can disqualify an applicant, as can engaging in hazardous hobbies like skydiving, racing, or other activities deemed high-risk by the insurer. A clean driving record, free from major violations like driving under the influence or multiple moving infractions, is also usually necessary.

Family medical history plays a role, with insurers looking for limited or no history of early death or critical illnesses in immediate family members, such as parents or siblings, before a certain age, often 60 or 65. Furthermore, applicants must fall within a specific, healthy height-to-weight ratio, often assessed using a build table similar to a Body Mass Index (BMI) chart, to qualify for this elite classification.

The Underwriting Assessment Process

When applying for life insurance, companies conduct an underwriting assessment to determine an applicant’s risk level and assign a health classification. This comprehensive process begins with the life insurance application form, where applicants provide personal information, health details, and lifestyle habits, including age, occupation, and current health conditions.

A crucial step in this assessment is a medical examination, often conducted by a paramedical professional. This exam typically includes measurements of height, weight, and blood pressure, along with collection of blood and urine samples for laboratory analysis. These tests help identify underlying health issues such as high cholesterol, blood sugar irregularities, or other conditions that might impact risk.

Insurers also review medical records, often requesting Attending Physician Statements (APS) directly from healthcare providers to verify reported medical history and past treatments. Beyond personal medical data, insurers perform checks on prescription history to understand current or past medications. Motor Vehicle Records (MVR) are often reviewed to assess driving habits and any history of violations, as these can indicate risky behaviors. Insurers also utilize the Medical Information Bureau (MIB), a non-profit organization that maintains a database of health information reported by member insurance companies, which helps prevent fraud and ensures consistent reporting across applications. This review allows underwriters to build a complete risk profile and assign an appropriate health class.

Premium Implications of Preferred Plus Status

Achieving Preferred Plus status directly translates to the most favorable financial outcome for life insurance applicants. Individuals who qualify for this classification are offered the lowest available premium rates for their chosen life insurance product, coverage amount, and age. This is because they represent the lowest risk to the insurance company, indicating a longer life expectancy compared to other classifications. The cost savings associated with Preferred Plus status can be substantial over the lifetime of a policy. For instance, premiums for a Preferred Plus applicant could be significantly lower than those for someone in a Standard or Substandard class, potentially saving thousands of dollars annually.