8. Health Classes and Ratings

Health Classes

Insurance companies use health classes to categorize the health of applicants. These, generally, range from regular to preferred to preferred plus. You do not have to apply for preferred rates as they would automatically be applied. Use our quoter with different health classes selected to see the impact on price.


Smaller insurance amounts (typically under $500,000) with less medical testing may not be eligible for higher health classes.



In addition, individuals may be “rated” in the opposite direction due to a higher degree of risk they pose. The factors impacting rating decisions are outlined on the next page.


Ratings increase the cost of insurance and range from an increase of 25% up to 400%. Past that, a company will decline to offer an individual insurance. The same insurance that costs one individual $50 a month could potentially cost another up to $250 a month.