See how an underwriter turns your health, build, smoking and lifestyle into a risk class, and how a rating multiplies the premium.
Ideal build band
Risk class
—
—
Premium multiple
—
vs. standard rate
Standard premium
—
$250k · 10-yr term / yr
Your premium
—
per year
Annual premium by risk class; your class is highlighted.
How this works. An underwriter starts every applicant at a baseline score of
100: the average, standard life. Each factor adds debits for higher
mortality risk (smoking, an unhealthy build, a chronic condition, a hazardous job, a poor driving
record) or subtracts credits for exceptional health. The final score sets the risk class:
preferred (exceptionally low risk), standard,
rated (above-average but insurable, priced as a table rating, each table adding
~25% to the standard premium), or declined. The premium multiple shows how the
rating scales the base premium.
Educational illustration of standard Canadian insurance concepts. Figures are illustrative, not an insurer’s rates.
Illustration only, not a quote or advice. Figures are simplified for education and do not
reflect any specific insurer's rates. Consult a licensed advisor.