Standard Lives
These consist of those whose anticipated mortality corresponds to the standard lives represented by the mortality table.
Preferred risks
These are the ones whose anticipated mortality is significantly lower than standard lives and hence could be charged a lower premium.
Substandard lives
These are the ones whose anticipated mortality is higher than the average or standard lives, but are still considered to be insurable. They may be accepted for insurance with higher (or extra) premiums or subjected to certain restrictions.
Declined Lives
These are the ones whose impairments and anticipated extra mortality are so great that they could not be provided insurance coverage at an affordable cost. Sometimes an individuals proposal may also be temporarily declined if he or she has been exposed to a recent medical event, like an operation.
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