Individuals defined as having a higher risk than standard based on health are known as what?

Individuals defined as having a higher risk than standard based on health are referred to as substandard risks. This classification arises when underwriting assessments indicate that the individual's health status, lifestyle choices, or medical history present greater potential for claims compared to the general population. As a result, substandard risks may face higher premiums or more restrictive policy terms, as insurance providers must account for the increased likelihood of future claims.

The term "substandard" directly communicates that these individuals do not fit the criteria for standard risk categories, which include those perceived as having typical health profiles. Understanding this classification is crucial for both insurers and applicants, as it sets the expectations for policy attributes, including pricing and coverage limits.