What Is Tobacco Rating? Definition

Why it matters

Carriers define tobacco use in different ways, and some include vaping, cigars, and nicotine gum or patches. Many look back 12 months or longer. Testing may check for nicotine. Quitting for the required period can allow a request to be re-rated. Answer honestly, since misstatements can affect a claim. Rules vary by carrier.

Source: naic.org

Where we use this term

Life insurance for seniors: what you can get at 50, 60, 70, and 80

Related terms

Underwriting Class: An underwriting class is the group a carrier places an applicant in after review, such as preferred or standard. Each class has its own premium rate, with healthier groups paying less.
Risk Class: A risk class is the category of insured people a carrier uses to group applicants with similar expected risk. It decides which premium rate the applicant pays.
Preferred: Preferred is an underwriting class just below preferred plus. It is for applicants in very good health, and it carries lower premiums than the standard classes do.
Standard: Standard is the underwriting class for applicants with average health and risk for their age. It is the benchmark that other classes are priced against.
Health Questions (Knock-Out Questions): Health questions are the application questions a carrier asks about medical history. Knock-out questions are the ones where a yes answer makes the applicant ineligible for that plan.

All 241 terms

Why it matters

Where we use this term

Talk to a licensed agent.