Rated Policy
A life insurance policy issued to an applicant who is considered to be a higher risk due to health issues or other factors. These policies typically have higher premiums than standard policies.
Detailed Explanation
If an applicant has certain medical conditions, the insurance company may still offer coverage but at a higher premium to reflect the increased risk.
Practical Example
Mark has a pre-existing heart condition. When he applied for life insurance, the company issued him a rated policy with a higher premium than someone in perfect health would pay.
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