What Are Underwriting Classes?
Underwriting classes are categories insurers use to group applicants based on risk characteristics. Each class has a rating factor that adjusts the base rate to reflect the likelihood of claims. For Farmers Life Insurance, the underwriting class determines the premium multiplier applied to the quoted rate. A lower class means lower premiums; a higher class raises costs.
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Common Classes in Farmers Life
Farmers typically uses the following classes for life insurance:
- Low Risk – healthy, non-smoker, no major medical history.
- Standard – mild health issues or moderate lifestyle factors.
- High Risk – chronic conditions, significant smoking history, or high BMI.
These are general labels; actual classes are numerical and proprietary.
How Farmers Decides Your Class
The underwriting process starts with a questionnaire covering medical history, family health, occupation, and lifestyle. Key data points include:
- Age and gender
- Body mass index (BMI)
- Smoking status
- Pre‑existing conditions
- Recent illnesses or surgeries
Farmers also reviews medical records, prescription history, and sometimes conducts a telephonic or in‑person interview. The collected data feeds into a statistical model that assigns a rating factor.
Impact on Premiums
The premium is calculated as:Base Rate × Rating Factor = Final Premium.
Example: A base rate of $0.20 per $1,000 of coverage with a rating factor of 1.25 results in $0.25 per $1,000. A rating factor of 1.50 would raise the cost by 20%.
Improving Your Underwriting Class
Applicants can influence their rating by addressing modifiable risk factors:
- Quit smoking – Most insurers offer a 1‑year "no‑smoke" discount.
- Weight management – Reducing BMI below 30 can move you to a lower class.
- Health maintenance – Managing chronic conditions, keeping blood pressure and cholesterol in check.
- Regular check‑ups – Up-to-date vaccines and screenings demonstrate proactive health care.
Providing complete, accurate information also avoids delays or negative adjustments.
Special Considerations for Farmers Farmers
Farmers Life Insurance sometimes offers a "Farmers Advantage" program that rewards applicants with agricultural background or farm‑related health benefits. Eligibility depends on:
- Years of farming experience
- Type of crops or livestock
- Farm safety certifications
These factors can lower the rating factor, making coverage more affordable.
Common Questions
Q: Do I need a medical exam?A: For most term policies, a questionnaire suffices. Larger amounts or whole‑life policies may require a physician exam.
Q: How long does the underwriting take?A: Typically 7–10 business days, but can extend if additional documentation is needed.
Q: Can I appeal a high rating?A: Yes, provide additional medical records or lifestyle changes and request a re‑evaluation.