What type of applicants are usually at a higher risk and may be classified as substandard?

Individuals with chronic health conditions are typically classified as higher risk or substandard applicants in health insurance. This classification arises because chronic conditions may lead to more frequent healthcare needs, including ongoing treatments, medications, and potentially higher costs for insurers. Insurers assess risk based on the likelihood of claims being made; thus, those with a history of health issues are more likely to incur significant medical expenses, prompting insurers to categorize them as substandard. This designation can result in higher premiums or limitations on coverage to mitigate the insurer's financial exposure.

While older individuals and those without previous insurance might also carry certain risks, it's the chronic health conditions that have the most direct impact on an applicant's immediate health risk profile. Excellent health records would typically indicate a lower risk, and lack of previous insurance does not inherently signify higher health risks; rather, it may just reflect a gap in insurance coverage.