THE ABCS OF LIFE INSURANCE TABLE RATINGS

Overview

Table ratings are a common underwriting tool life insurers use when an applicant cannot qualify for standard rates because of health, occupation, or lifestyle factors that increase mortality risk. Instead of denying coverage, many companies offer coverage at higher premiums categorized by tables (for example, Table A, B, C or Table 1, 2, 3).

Table-rated applicants receive the same death benefit and policy features as standard applicants; the difference is the premium, which is increased to reflect the insurer’s higher estimated risk. If you want background on basic policy types and how coverage works, see Understanding Life Insurance.

Key takeaways

  • Table ratings increase premiums for applicants with higher mortality risk rather than denying coverage.
  • Ratings are applied in tiers (tables) and typically increase premiums by a percentage or fixed extra amount.
  • Health improvements or changes in status can sometimes lead to a lower table or standard rates on future review.
  • Shopping multiple insurers matters because underwriting standards and table assignments vary by company.

How it works

Underwriters review medical records, lab tests, occupational risks, and lifestyle factors when setting a rate. If the findings fall outside the insurer’s standards for a preferred or standard policy, the underwriter assigns a table rating that corresponds to a higher premium.

Table nomenclature differs by company: one insurer might use letters (Table A, B) and another numbers (Table 1, 2). The dollar impact is set by the insurer’s mortality assumptions and pricing model; common increments include 10%, 25%, 50%, or a flat extra premium per thousand dollars of coverage.

Table ratings usually apply to the initial premium. Some insurers allow applicants to request a re-evaluation after a period of demonstrated improvement, such as stable weight loss, controlled blood pressure, or sustained non-smoking status.

What it may cover (and what it may not)

A table-rated life policy generally provides the same covered causes of death as a standard policy, including natural causes and accidental death, subject to standard exclusions such as suicide during an initial contestability period or misrepresentation on the application.

What a table rating does not do is limit the death benefit or change benefit terms in most cases; it simply adjusts cost. However, very high-risk cases might be declined or issued with policy riders or exclusions specific to a condition.

Common mistakes to avoid

  • Assuming all insurers use the same table criteria — underwriting practices vary significantly between companies.
  • Believing a table rating means you’re uninsurable — many table-rated policies still provide full coverage at a higher premium.
  • Failing to reapply for a better rate after improving health — many insurers accept evidence of improvement and reduce rates after a waiting period.
  • Not shopping multiple companies — different carriers may assign different tables for the same health profile.

Questions to ask an agent

  • How does this insurer define its table ratings and what percentage increases apply to each table?
  • Is there an opportunity to reclassify or request a rate review later, and what evidence is required?
  • Does the policy include any condition-specific exclusions or riders that affect coverage?
  • Can you compare offers from other carriers that may have more favorable underwriting for my situation, such as Sub Standard Life Insurance options?

Next steps

If you currently have a table-rated policy, gather documentation of any health or lifestyle changes (medical reports, lab results, weight records, tobacco-free verification) before requesting a re-evaluation.

If you are applying, get quotes from multiple insurers and ask for written explanations of any table assignment so you can compare the cost impact directly. To review options or to discuss next steps with a licensed representative, you can talk to an agent.

Frequently Asked Questions

What is the difference between a table rating and a flat extra?

A table rating adjusts the base premium by a percentage tied to a table level, while a flat extra adds a fixed dollar amount to the premium; both increase cost but are calculated differently.

Can a table-rated policy be converted to standard rates?

Yes—many insurers allow re-evaluation after a specified period if you show sustained health improvements, though approval is not guaranteed.

Does a table rating change the policy’s death benefit?

No; table ratings typically affect only the premium amount and not the death benefit or policy terms.

Should I disclose a minor health condition on my application?

Always disclose medical information honestly; failure to disclose can lead to claim denial or policy rescission during the contestability period.

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