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Rate Class

Rate Class is the risk category assigned to an individual when they purchase life insurance, based on factors like health, age, lifestyle, and family history. This class affects the premium amount, with healthier individuals generally receiving better rate classes and lower premiums.

Common rate classes include Preferred, Standard, and Substandard, with each reflecting a different level of risk. It’s a key determinant in the cost of coverage and is based on the insurer’s assessment of the insured’s overall health and lifestyle.