Ace the Chartered Life Underwriter Challenge 2025 – Secure Your Success and Dominate the Exam!

A standard life insurance policy generally provides coverage for individuals who are considered to have a standard level of risk. In the case of someone who has quit smoking for over a year, this individual may be eligible for standard rates or even preferred rates, depending on the insurer’s underwriting criteria. The risk associated with smoking is significantly reduced after a year of cessation, as health improves and the likelihood of smoking-related illnesses diminishes, making this situation typically covered under a standard life insurance policy.

In contrast, the other situations represent higher risks. A pilot who occasionally flies for leisure may face restrictions or higher premiums due to the associated dangers of flying, particularly if the flights involve small aircraft or unregulated environments. An individual who participates in risky hobbies like skydiving is usually subject to exclusions or higher rates as the activity can significantly increase health risks. Similarly, a soldier deployed overseas may also be considered a higher risk due to the uncertainties and dangers associated with military deployment, which could lead to exclusions in coverage based on standard underwriting guidelines.