Classified insurance is insurance protection for people who are deemed considerably risky for insurers. This type of coverage, which is predominantly offered in terms of life and health insurance, can come with higher premiums due to the added risk for the insurer.
Classified insurance is also commonly referred to as substandard insurance.
Depending on a person's risk classification, he or she may only be able to receive certain types of insurance. For example, a 72-year-old man with a history of heart disease may only qualify for certain types of life insurance due to the high risk of death that he carries. Classified insurance is often used to insure such people who carry these high risks. However, if a person's risk is too high, then he or she may not even qualify for any life insurance coverage at all.
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