What is one implication of being classified as a standard risk?

Being classified as a standard risk has the implication of resulting in lower premiums. This classification typically indicates that an individual is considered to have an average level of risk for insurance purposes. Insurers assess applicants based on various factors such as health history, lifestyle, and occupation.

A standard risk classification means the insurance company determines that the individual does not present significant additional risk compared to the average person. As a result, they are often rewarded with lower premiums because the likelihood of claims is anticipated to be similar to that of the general population. This stands in contrast to other risk classifications which might imply higher premiums or other restrictions based on a perception of higher risk. Therefore, being a standard risk is generally favorable from a cost perspective in terms of insurance premiums.