Preferred Life Insurance Rate?

What does a preferred life insurance rating mean?

When you apply for a life insurance policy the price you pay is based on a rate the insurer develops for you based on your overall health, age, risk factors, and your life expectancy.

The rate is multiplied by the amount of life insurance you need to determine your premium - the amount you pay for your life insurance.

For instance, a rate of $5 per thousand would mean you will pay $5 X 100 for a $100,000 life insurance policy, for a total of $500 per year.

Preferred rates are given to those individuals in excellent health. A preferred rate is the best rate to receive for a life insurance policy, which means you will pay less than others who are classified as a standard or sub-standard risk for life insurance.

It basically means you qualify for the best rates available for life insurance.

Learn about preferred rate requirements for life insurance