Why might some applicants be classified as 'preferred' during underwriting?

Some applicants may be classified as 'preferred' during the underwriting process primarily because they are in good health and exhibit favorable lifestyle habits. This classification indicates that these individuals have a lower risk profile from an insurance perspective. Underwriters assess factors such as medical history, current health status, exercise routines, diet, and other lifestyle choices—such as not smoking or maintaining a healthy weight—when determining risk.

Individuals in this category typically have fewer health issues, which correlates with a lower likelihood of filing claims. As a result, insurers are willing to offer them better premium rates and coverage options. The 'preferred' classification is part of the underwriting process that aims to differentiate between varying degrees of risk among applicants to tailor policies accordingly.