Standard Risk Class

Standard Risk Class A standard risk refers to an insurance risk that an insurance company's underwriting standards considers common or normal. In technical terms a standard risk class is the group whose morbidity rate is thought of as average. For life insurers, standard risk means an average life expectancy. You may have some health issues in your family or in your past, which keeps you out of more preferred risk groups, resulting in higher premiums. Contrarily a 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 a health impairment and will therefore pay higher premiums for their insurance than preferred or standard risk individuals. If you are classified as a higher risk than standard, you are subject to various degrees or ratings of substandard, which each insurer approaches a bit differently. This can be because of health issues or a risky past. Your premiums may be among the highest rates, typically at the Standard price plus an additional 25 percent at every step down in the ratings. It’s important to understand this system and the various risk classes insurers use before applying for coverage. Then you will have a better idea of how much your insurance rate is being calculated. #benewinsurance #insurtech #inclusiveinsurance #insurance #reinsurance #takaful