If an applicant's health is poorer than that of an average applicant, what classification may the policy be issued under?

When an applicant's health is poorer than that of an average applicant, the insurance underwriter may classify the policy as substandard. This classification is applied to individuals who present higher risks due to their health conditions, lifestyle choices, or medical history.

Substandard policies typically come with higher premiums to reflect the increased risk to the insurer, as these individuals may have a greater likelihood of requiring payouts compared to those deemed standard or preferred. By issuing a policy under this classification, the insurer acknowledges the applicant’s health status while still providing them the opportunity to obtain coverage, albeit at a higher cost.

In contrast, the other classifications—standard, preferred, and declined—do not apply to an applicant with poorer health. A standard classification would typically apply to average health applicants, preferred to those with above-average health, and a declined status indicates that the application has been turned down due to the significant health risks presented.