“You’ve Been Table Rated”: What This Means and How to Still Get Affordable Coverage.
I Got a Bad Rating, But I Still Got a Great Deal. Here’s How.
I was disappointed when my life insurance application came back with a “Table 4” rating due to my weight. It meant my premium was going to be 100% higher than the standard rate. I felt defeated. But my agent didn’t quit. He took my medical file and shopped it to ten other insurance carriers. One company, known for being more lenient on build, came back with a much better “Table 2” offer. A table rating isn’t a rejection; it’s an opening bid. A good agent can turn it into a negotiation.
Flat Extra vs. Table Rating: Is Your Extra Cost Permanent or Temporary?
The Critical Difference Between a Chronic Condition and a Risky Hobby.
My friend, a private pilot, received a “flat extra” premium of $5 per thousand dollars of coverage due to his hobby. I, with a chronic health condition, received a “table rating,” which was a percentage surcharge on my premium. The key difference? My table rating is permanent. His flat extra is temporary. If he gives up flying in a few years, he can have the flat extra removed and his premium will drop significantly. Mine will not. It’s a crucial distinction between a temporary risk and a permanent one.
How a “Flat Extra” for a Dangerous Hobby Can Be Removed Later.
I Sold My Motorcycle and Saved $600 a Year on My Life Insurance.
When I bought my life insurance, I was an avid motorcycle rider, so the company added a “flat extra” charge of $250 per year to my policy. It was a surcharge specifically for that risky activity. Three years later, after my son was born, I sold the bike and hung up my helmet for good. I sent proof to the insurance company that I no longer had a motorcycle license or owned a bike. They removed the flat extra charge completely, and my premium instantly dropped by $250.
Understanding the Alphabet Soup: How Table Ratings (A-J) or (1-10) Work.
It’s a Simple System Once You Crack the Code.
I was confused when the underwriter said I was “Table B.” My agent explained it’s a simple system. Most companies use either letters (A-J) or numbers (1-10) for their table ratings. Each letter or number corresponds to a 25% increase over the “Standard” premium rate. So, Table A (or 1) is Standard + 25%. Table B (or 2) is Standard + 50%. Table C (or 3) is Standard + 75%, and so on. Once I understood that simple math, the “alphabet soup” made perfect sense.
Each “Table” is a 25% Surcharge. Here’s How to Calculate Your Real Premium.
The Quick Math to See Your Real Cost.
Let’s say the “Standard” rate for your policy is $100 a month. If you are approved at a “Table 6” (or Table F) rating, the math is easy. Each table is a 25% surcharge. So, you multiply 6 x 25%, which equals a 150% surcharge. You add that surcharge to the base premium. So, your final premium would be the $100 standard rate plus a $150 surcharge, for a total of $250 a month. It’s a straightforward way to understand exactly how the rating impacts your final cost.
Medical Conditions that get Table Ratings vs. Flat Extras.
Chronic vs. Acute or Activity-Based.
The type of extra charge you receive depends on the nature of the risk. Table ratings are typically for ongoing, chronic medical conditions that affect your long-term life expectancy, like diabetes, heart disease, or being overweight. A flat extra premium is usually for a specific, isolated risk. This could be a past, treated cancer where they want to see you remain cancer-free, or for a hazardous occupation (like a logger) or a dangerous hobby (like scuba diving or flying).
How to Shop Your Table Rating to Other Carriers to Get a Better Offer.
Not All Underwriters See Risk the Same Way.
When I was given a “Table D” rating for a managed health condition, my agent told me not to worry. He explained that every insurance company has its own underwriting “niche.” Some are more aggressive on diabetes, while others are more lenient on heart conditions. He sent my file to five other carriers. One of them came back with a “Standard” offer, with no table rating at all. We saved over $1,200 a year simply because we found an insurer whose underwriting appetite was a better fit for my specific situation.
The “Reconsideration” Strategy: How to Improve Your Health and Lower Your Rating.
I Lost 30 Pounds and Cut My Life Insurance Bill in Half.
I received a table rating on my life insurance because I was overweight and had high blood pressure. I was determined to get a better rate. Over the next year, I lost 30 pounds and got my blood pressure under control with diet and exercise. I went back to my agent with my new medical records. He submitted them for a “reconsideration.” The insurance company reviewed my improved health and removed the table rating completely. It was a massive financial win and an incredible motivation for my health journey.
Don’t Be Discouraged by a Bad Rating. It’s Not a Denial.
An Offer is a Starting Point.
Getting a table rating can feel like a punch to the gut. It’s easy to feel discouraged and want to give up. But it’s crucial to remember: a table rating is an offer of insurance, not a denial. The company is saying, “Yes, we will cover you, and here is the price.” It’s the beginning of a conversation. An experienced, independent agent can take that offer and use it as leverage to find a better one elsewhere. Don’t walk away from the table; let your agent play the hand for you.
The Underwriting Secret That Can Turn a Table Rating Into a Standard Offer.
The Power of a Cover Letter.
My client had a complex medical history that I knew would trigger a table rating. Instead of just submitting the application, I wrote a detailed cover letter to the underwriter. I explained the context of his medical issue, highlighted his excellent compliance with his doctor’s orders, and included a personal note from his physician. This human element, providing context beyond the cold medical data, helped the underwriter see him as a person, not a risk file. They approved him at a Standard rate, a huge victory.