Accepted on the company’s standard / ordinary rates

Insurers' premiums are based on mortality tables adopted by them. Mortality table gives  rate of death at each age in a given population. It may be prepared on the basis of Census data or it may be based on mortality experience of insured lives. The mortality experience of insured lives will be better as those lives are selected ones. When a proposal is analyzed to assess the risk on the life if it is found that the life under consideration is likely to face a mortality experience similar to or better than the standard mortality experience (as per adopted mortality table) of the insurer such a life is called a ‘standard life’. A standard life can be accepted for cover on standard rates of the insurer. There is no need to charge an extra premium or impose a lien on the policy or offer different terms while accepting the proposal. While accepting the proposal the underwriter gives his decision as ‘accepted at standard rates or ordinary rates’.