What is the difference between a standard risk and substandard risk reflected?
Substandard Risk\n\n Premiums for substandard policies would be significantly higher than those for standard coverage. Substandard risks typically pay a higher premium rate to compensate for the expected shortened longevity of the insured.
What is standard risk in insurance?
Insurance risk that the underwriters of the insurance companies consider common or normal is called standard risk. The standard risk is associated with almost all life insurance applicants.
What is another name for a substandard risk classification?
Another substandard risk classification name is an impaired risk or table-rated life insurance. The substandard risk class refers to people who have significant health impairments. Depending on their risks, these individuals may have to pay an extra fee or table rating to the issuing life insurance company.
Which of the following statements is correct about a standard risk classification in the same age group and with similar lifestyles?
Which of the following statements is correct about a standard risk classification in the same age group and with similar lifestyles? Standard risk is representative of the majority of people.