Which term refers to individuals who may have lower insurance premiums due to favorable health factors?

The term that refers to individuals who may have lower insurance premiums due to favorable health factors is "Preferred Risk." This classification is used by insurers to identify people who are perceived as having a lower likelihood of making a claim based on their excellent health, lifestyle choices, and overall risk profile.

Individuals categorized as "Preferred Risk" typically showcase attributes such as not smoking, maintaining a healthy weight, having good cholesterol levels, and proactively managing any health conditions. Because these individuals present a lower risk to the insurer, they are often rewarded with reduced premiums, which reflects the insurance company’s assessment of the likelihood of claims being filed against their policies.

In contrast, other classifications, such as Standard Risk and Substandard Risk, would typically involve higher premiums due to average or higher health risks. High-Risk Individuals would generally face even greater scrutiny and higher costs for coverage, making the Preferred Risk category particularly advantageous for those in optimal health.