Classified Insurance
What Does Classified Insurance Mean?
Classified insurance refers to insurance coverage for individuals who are considered significantly risky by insurers. This type of coverage, primarily found in life and health insurance, often comes with higher premiums due to the increased risk for the insurer.
Classified insurance is also commonly known as substandard insurance.
Insuranceopedia Explains Classified Insurance
Depending on an individual’s risk classification, they may only qualify for specific types of insurance. For example, a 72-year-old man with a history of heart disease might only be eligible for certain types of life insurance due to the elevated risk of mortality associated with his condition. Classified insurance is often utilized to provide coverage for individuals deemed to carry high risks. However, if a person’s risk is considered too high, they may not qualify for any life insurance coverage at all.
