Life Insurance✓ Verified · outline & fact-checked · Sep 2026Difficulty 1/5
In life insurance underwriting, a 'standard' risk classification means the applicant:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
A standard risk is an applicant whose expected mortality is normal for their age, so they pay the standard premium rate. A preferred (preferred plus) risk has better-than-average health and habits and gets a lower premium; a substandard risk has higher expected mortality and pays an extra premium (rated coverage). Classifying risks correctly is the core purpose of underwriting.
Why the other options are wrong
- B) Higher expected mortality describes a substandard risk, which pays an increased (rated) premium.
- C) No risk class guarantees coverage without medical information; even simplified-issue products are a separate category.
- D) A discount for excellent health describes the preferred risk class.
Memory hook
Standard = the middle lane: normal mortality, normal premium. Preferred = the fast lane (discount). Substandard = the toll road (extra premium).