Which of the following is a common risk classification used by life insurance underwriters?

In life insurance, underwriters use risk classifications to assess the health and lifestyle of applicants, which in turn helps determine premium rates. Each of the categories—Substandard, Preferred, and Standard—represents different levels of risk associated with insuring an individual.

The Substandard classification is used for applicants who have health issues or risky behaviors that increase the likelihood of claims. Consequently, they may pay higher premiums than individuals in better health.

The Preferred classification is given to applicants who are healthy, have a good lifestyle, and are deemed lower risk by the insurer. These individuals qualify for lower premiums due to their favorable health and lower likelihood of needing to file a claim.

The Standard classification is for those who fall in between the preferred and substandard categories. These applicants typically have average health and risk factors, leading to average premium rates.

Since all three classifications are commonly utilized by life insurance underwriters to categorize applicants based on their risk profiles, the correct answer is that all the listed classifications are indeed common risk classifications used in life insurance underwriting.