If a life has an anticipated mortality significantly lower than standard lives and could be charged lower premium the life is a –

A. Standard life

B. Sub-standard life

C. Declined risk

D. Preferred risks

Answer: Option D

Solution(By Examveda Team)

If a life has an anticipated mortality significantly lower than standard lives and could be charged lower premium the life is a Preferred risks. A preferred risk is a policyholder who is considered significantly less likely to file claims.