Term Life insurance premiums are subject to medical underwriting. That means the younger and healthier you are, the cheaper your rates will be. Preferred rates are the lowest available and bestowed upon people in the optimum health. Everyone else falls into the “standard’ rate category. "While rates and criteria vary from company to company, generally, to receive preferred status, you must be in excellent overall health, not participate in any hazardous activities, or have a history of drug or alcohol abuse. To qualify for standard rates, you may have had some minor health problems in the past, or have current lifestyle issues, such as high cholesterol or obesity."

Some life insurance companies offer a Preferred-Plus life Insurance Rate. To obtain this “rock bottom” rate, you cannot use any tobacco products whatsoever. You cannot have a history of drug or alcohol abuse, and you cannot engage in any hazardous activities. Statistically these people are those who are likely to live the longest, and therefore are entitled to the best rates.