A person who is a nonsmoker, of average weight, and in excellent health would most likely be in which risk classification?

• A. Substandard
• B. Preferred
• C. High risk
• D. Table rated

Answer: (B)

Underwriting looks at lifestyle and health to gauge how likely a person is to pass away or become disabled during the term of the policy. A nonsmoker with average weight and excellent health shows the lowest mortality risk among typical applicants, so the insurer uses the best available rating for them. That rating is the preferred category, which means the lowest premium relative to other standard risk levels. The other designations—substandard or table rated, and high risk—reflect higher risk and higher premiums, which wouldn’t apply to someone in excellent health who doesn’t smoke. So, the best fit for this profile is the preferred rating.