What Preferred Plus Means in Life Insurance
In life insurance, Preferred Plus is the most favorable risk class an applicant can receive. It means the insurer views you as exceptionally low risk, which translates into the lowest premiums among standard rating tiers. The label is used by many major carriers, though exact criteria vary by company.
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How Insurers Decide Your Rating Class
Underwriters assign a class based on a combination of factors, not a single test. The most common considerations include:
- Age at application
- Height and weight, evaluated against build charts
- Tobacco and nicotine use
- Personal and family medical history
- Driving record and hazardous hobbies
- Credit-based insurance score where permitted
Preferred Plus applicants typically have no major health issues, no history of substance abuse, and a clean driving record. Even a well-controlled chronic condition can move you into a lower class.
Why the Classification Matters
Your risk class directly determines your premium. A Preferred Plus rating can save tens of thousands of dollars over a 20- or 30-year term compared to standard rates. The difference comes from the insurer's actuarial models, which price coverage around your statistical likelihood of a claim.
Preferred Plus vs Other Common Classes
| Rating Class | Risk Level | Typical Premium |
|---|---|---|
| Preferred Plus | Lowest | Lowest |
| Preferred | Low | Low |
| Standard Plus | Moderate-Low | Moderate |
| Standard | Average | Average |
| Substandard | Above Average | Higher |
What If You Don't Qualify
You can often improve your class by addressing controllable factors before applying. Quitting tobacco for at least 12 months, losing weight to a healthier BMI, and resolving outstanding driving violations can shift you upward. If you are denied Preferred Plus, ask the agent which specific factors drove the decision and whether a different carrier would score you differently.