What is another name for 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.

What are the classifications of substandard risk?

Sub-Standard risk is an underwriting classification for individuals that have significant health concerns. Generally, sub-standard risks have a shorter than average life expectancy due to health impairment and will therefore pay higher premiums for their insurance than preferred or standard risk individuals.

What do you mean by sub standard risk in insurance?

Substandard insurance is for individuals that pose a higher risk of filing a claim. Higher risk insureds include those that have poor physical health or poor driving records, among other things. Insurers look at family and medical history, as well as driving and employment records to assess risk.

What is another name for interest sensitive whole life insurance?

Current assumption whole life insurance, which is also known as fixed premium universal life or interest-sensitive whole life, is a variation of universal life insurance. It involves fixed premiums and fixed death benefits, and, as in other universal life policies, its growth in cash value depends on market conditions.

What is the difference between a standard risk and a 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.