What Is Preferred?
The second-highest risk classification in life insurance underwriting, for applicants in very good health with minor risk factors, qualifying for premium rates below standard.
Understanding Preferred
Preferred is the second-best underwriting risk classification in life insurance, positioned between Preferred Plus and Standard Plus (or Standard, depending on the carrier's class structure). Applicants who qualify for Preferred classification are in very good overall health but may have one or more minor risk factors that prevent them from qualifying for the top Preferred Plus class. These factors might include mildly elevated blood pressure or cholesterol controlled with medication, a slightly higher BMI (typically 27-30), a family history of heart disease or cancer in immediate family members, or a minor driving infraction on record.
Preferred classification still offers premium rates significantly below Standard rates, typically 20-35% less for the same coverage amount and policy type. This makes it the most commonly targeted risk class for health-conscious individuals who may not meet the exceptionally stringent requirements of Preferred Plus. The majority of healthy, non-tobacco-using applicants who apply for life insurance will receive either Preferred Plus or Preferred classification, representing a combined population of approximately 30-40% of all applicants.
The specific criteria for Preferred classification vary by carrier, and some carriers offer an intermediate "Standard Plus" class between Preferred and Standard. Understanding these classifications and how different carriers define them is valuable because an applicant who receives Preferred from one carrier might qualify for Preferred Plus from another based on how each weighs specific health factors. For example, one carrier may offer Preferred Plus to applicants on a single low-dose blood pressure medication, while most others would classify that applicant as Preferred.
Preferred classification is particularly relevant for applicants who take commonly prescribed medications for manageable conditions. Statins for cholesterol management, low-dose blood pressure medications, thyroid medications, and certain other maintenance medications are often compatible with Preferred classification at many carriers. The key factors are that the underlying condition is well-controlled, the medication is effective, and there are no significant additional risk factors.
Important Things to Know
Preferred is the second-best risk class, offering rates typically 20-35% below Standard, representing significant premium savings.
Applicants are in very good health but may have minor, well-controlled risk factors such as medication for blood pressure or cholesterol.
Most commonly achieved risk class for healthy, non-tobacco-using applicants, representing a large portion of the insured population.
Criteria vary by carrier, creating opportunities to shop for better classifications through multi-carrier comparison.
Some carriers offer Standard Plus as an intermediate class between Preferred and Standard, adding another pricing tier.
Many commonly prescribed medications (statins, low-dose blood pressure, thyroid) are compatible with Preferred at multiple carriers.
The difference between Preferred and Standard can save hundreds to thousands of dollars annually depending on coverage amount.
An experienced agent who knows carrier-specific guidelines can often find Preferred or better for applicants who might assume they would receive Standard.
Seeing Preferred in Practice
Illustrative example: A 52-year-old Chattanooga business owner applies for a $750,000 whole life policy. He is in good health, exercises regularly, and has never used tobacco, but takes a low-dose statin for mildly elevated cholesterol. This prevents him from qualifying for Preferred Plus with most carriers, but he qualifies for Preferred classification. His illustrative annual premium is approximately $9,200, compared to approximately $12,500 at Standard rates, saving approximately $3,300 per year. Actual premiums vary by carrier and individual underwriting. In a second illustrative scenario, a 45-year-old Nashville professional has a BMI of 29 and mild sleep apnea treated with CPAP. One carrier classifies her as Standard due to the combination of factors, while another carrier, with more favorable guidelines for CPAP-treated sleep apnea, offers Preferred. The Preferred classification saves approximately $450 per year on a $500,000, 20-year term policy, totaling $9,000 over the term. Actual premiums vary by carrier and individual underwriting.
Preferred in Tennessee
Tennessee's competitive insurance market means that multiple A-rated (A.M. Best) carriers offer Preferred classification with varying criteria, giving Tennessee residents access to a wide range of options. The TDCI oversees rate filings and underwriting guidelines under TCA Title 56 to ensure fairness and actuarial soundness. Tennessee's diverse population includes many residents who take commonly prescribed medications for manageable conditions, making carrier-specific Preferred criteria particularly important. Agents in our network understand which Tennessee-licensed carriers have the most favorable Preferred criteria for specific health profiles, such as carriers that offer better classifications for applicants on statin medication, blood pressure medication, thyroid medication, or with controlled sleep apnea. This expertise allows us to match Tennessee applicants with the carrier most likely to offer the best risk classification for their individual situation.
Explore Preferred in Detail
Get answers to specific questions about preferred.
Related Glossary Terms
Risk Class
A classification assigned during underwriting that groups applicants by their level of mortality risk, directly determining the premium rate for their life insurance policy.
Read Definition →Preferred Plus
The highest (best) risk classification in life insurance underwriting, reserved for applicants in exceptional health with no significant risk factors, qualifying for the lowest available premium rates.
Read Definition →Standard
The baseline risk classification in life insurance underwriting for applicants with average health and mortality risk, serving as the reference point for premium rate calculations.
Read Definition →Underwriting
The process by which an insurance carrier evaluates an applicant's risk factors to determine eligibility, risk classification, and premium rates for a life insurance policy.
Read Definition →Learn More
Frequently Asked Questions About Preferred
Preferred Plus requires exceptional health with virtually no risk factors, while Preferred allows for minor controlled conditions such as medication for blood pressure or cholesterol, a slightly higher BMI (typically 27-30), or family health history. The premium difference between the two classes is typically 15-25% for the same coverage, which can amount to hundreds of dollars annually.
Yes, many carriers offer Preferred classification for applicants who take common medications such as statins for cholesterol, low-dose blood pressure medication, thyroid medication, or mild anti-anxiety medication, as long as the underlying condition is well-controlled and there are no other significant health issues. The specific medications and conditions accepted vary by carrier, which is why multi-carrier comparison is valuable.
Yes. Preferred is an excellent classification that offers premium rates well below Standard, typically saving 20-35% on the same coverage. Most healthy adults who maintain a reasonable fitness level and do not use tobacco will qualify for Preferred or better. It represents strong, below-average mortality risk and is the most commonly achieved above-average classification.
Conditions commonly compatible with Preferred include well-controlled mild hypertension (with or without medication), mildly elevated cholesterol managed with a statin, hypothyroidism on stable medication, mild asthma, treated and controlled anxiety or depression, and mild sleep apnea with CPAP compliance. Each carrier evaluates these conditions differently, so outcomes vary.
An experienced agent who represents multiple carriers and understands their specific underwriting guidelines is the most effective resource. They can evaluate your health profile against each carrier's criteria and identify which carrier is most likely to offer the best classification. This informal pre-screening process, often called "shopping the case," avoids unnecessary applications and maximizes your chances of the best outcome.
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