Glossary

Rate class

The underwriting category, such as preferred plus, standard or substandard, that sets the price an insurer charges for a given age and coverage.

Also called: risk class, underwriting class, rating class

A rate class is the bucket an insurer places you in after underwriting. Everyone with the same class, age, sex, product and coverage amount pays the same premium. A typical ladder runs from preferred plus (best) to preferred, standard plus and standard, with parallel classes for tobacco users and table ratings below standard for higher risks.

Insurers assign classes by comparing your health and lifestyle with their criteria: blood pressure, cholesterol, build, medical history, family history, tobacco and nicotine use, driving record, and hazardous jobs or hobbies. Each insurer weighs these differently, so the same person can be preferred at one company and standard at another. Hypothetically, a 40-year-old buying a $500,000, 20-year policy might see quotes of $25 a month at preferred plus, $32 at preferred and $45 at standard.

Quotes are only comparable when they assume the same class, and an online quote usually assumes a class you haven't been approved for yet. The class in your issued policy is what counts. If your health improves after issue, some insurers will consider a request to move you to a better class. See life insurance rate classes: preferred plus to substandard and asking for a better rate class later.

Last reviewed October 4, 2026

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Related terms

Preferred plus Typically the lowest-priced underwriting class, reserved for applicants in excellent health with a clean family history and no high-risk habits. Standard rate class The underwriting class for applicants of average health and risk, priced at an insurer's baseline rather than a discounted preferred rate. Substandard rate class An underwriting class for applicants with higher-than-average mortality risk, who are offered coverage at an extra charge above standard rates. Tobacco rate class The higher-priced underwriting class for applicants who use tobacco or nicotine products, which can include vaping, chew and nicotine gum. Table rating An extra charge for higher-risk applicants expressed in numbered or lettered tables, each typically adding 25 percent to the standard premium. Underwriting The process an insurer uses to evaluate an applicant's risk, from health and lifestyle to finances, and decide whether and at what price to offer coverage.

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Related tools

Life insurance quote comparison worksheet Enter up to four quotes to see cost per $1,000 of coverage and total cost over the term, with flags for differences that matter besides price.