What is considered 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's 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.

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 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.