What is a characteristic of a sub-standard risk client in life insurance?

A sub-standard risk client in life insurance typically presents a higher likelihood of presenting a risk to the insurer due to certain health conditions or lifestyle factors that are considered more hazardous. This classification arises from the evaluation of underwriting criteria, which includes medical history, lifestyle choices, and potential hazards that could lead to higher mortality rates. Therefore, a client belonging to this category might have chronic health issues, such as diabetes or heart disease, or engage in risky activities, such as extreme sports or heavy smoking.

In contrast, other characteristics mentioned do not align with the nature of sub-standard risks. For example, those who are expected to live longer than average would not classify as sub-standard; similarly, clients who can acquire insurance at regular rates indicate a standard risk, meaning they are less likely to incur higher claims. Lastly, preferred risk clients are associated with lower risk factors, making them eligible for better rates due to their overall health and lifestyle advantages. Consequently, the unique traits of sub-standard clients are precisely tied to their specific health or lifestyle challenges, necessitating different underwriting standards and often resulting in higher premiums to manage the increased risk.