What Is Table Rating?
A method of pricing substandard life insurance where each table level represents a 25% increase above the standard premium rate, used to accommodate applicants with higher-than-average mortality risk.
Understanding Table Rating
Table rating is the most common method used by life insurance carriers to price substandard (impaired risk) policies. Under this system, each "table" represents an incremental increase in the assumed mortality rate compared to Standard classification. Typically, Table 1 (or Table A) equals 125% of Standard mortality, Table 2 (or Table B) equals 150%, and so on, with each subsequent table adding another 25%. Most carriers offer table ratings up to Table 8 (300% of Standard) or Table 16 (500% of Standard), depending on the carrier and the specific condition being rated.
Table ratings are applied to the base premium, so the policy owner pays the table-rated premium for the entire duration of the policy. Unlike flat extra charges, which are typically temporary and removed after a specified period, table ratings are permanent for the life of the policy unless the carrier offers a formal reconsideration process. The specific table assigned is determined by the underwriter based on the nature, severity, treatment status, and combination of risk factors present. More severe or multiple conditions result in higher table ratings.
Understanding table ratings is important because they represent a significant premium increase that compounds over time. A Table 4 rating means the policy owner pays double the Standard premium throughout the life of the policy, and a Table 8 rating means triple the Standard premium. For a whole life policy with premiums paid over decades, the cumulative additional cost can be substantial. Despite the higher cost, table-rated coverage provides the same death benefit as a Standard-rated policy and is far more valuable than having no coverage.
For applicants who receive table ratings, shopping among carriers is particularly important, as the variation in substandard underwriting between carriers can mean the difference of several table levels. An applicant rated Table 4 by one carrier might receive Table 2 from another carrier with more favorable guidelines for their specific condition. Over the life of a policy, this two-table difference can save tens of thousands of dollars in premiums while providing the same death benefit protection.
Important Things to Know
Each table level represents a 25% increase above Standard mortality rates (Table 1 = 125%, Table 2 = 150%, Table 4 = 200%, Table 8 = 300%).
Table ratings are typically permanent for the life of the policy, unlike temporary flat extra charges that may be removed.
Carriers may offer tables up to Table 8 (300% of Standard) or Table 16 (500% of Standard), with applications above the maximum table typically declined.
The specific table assigned depends on the nature, severity, treatment status, and combination of risk factors identified during underwriting.
Shopping among carriers is critical because substandard underwriting guidelines vary significantly, with potential differences of two or more table levels.
Table ratings are applied to the base premium, meaning the increased cost compounds over the life of the policy.
Some carriers offer a formal reconsideration process that may reduce the table rating if the applicant's condition improves or additional favorable medical information is provided.
The combination of a table rating and a flat extra on the same policy addresses both permanent and temporary risk factors.
Seeing Table Rating in Practice
Illustrative example: A 47-year-old Murfreesboro resident with well-controlled insulin-dependent diabetes applies for a $300,000 term life policy. She receives a Table 3 rating (175% of Standard mortality) from Carrier A. If the Standard annual premium would be $1,200, her table-rated premium is approximately $2,100 ($1,200 x 1.75). Another carrier with more favorable diabetes guidelines and consideration for her excellent A1C levels offers Table 1 (125% of Standard), resulting in an annual premium of approximately $1,500. The $600 annual savings demonstrates the significant value of shopping among carriers. Actual premiums vary by carrier and individual underwriting. In a second illustrative scenario, a 55-year-old Nashville resident with a history of coronary artery bypass surgery five years ago receives Table 6 from one carrier and Table 4 from another carrier that specializes in cardiac underwriting. On a $500,000 whole life policy with a Standard premium of $12,000, the Table 6 rating produces a premium of $30,000 versus $24,000 at Table 4, a $6,000 annual difference. Over 20 years, the carrier selection saves $120,000 in cumulative premiums. Actual premiums vary by carrier and individual underwriting.
Table Rating in Tennessee
Tennessee law requires carriers to provide applicants with a written explanation of any table rating, including the factors that contributed to the classification and the specific table level assigned. The TDCI oversees substandard rating practices to ensure they are actuarially justified and non-discriminatory under TCA Title 56. Tennessee residents who receive a table rating have the right to request reconsideration and to provide additional medical documentation that may support a lower rating. Agents in our network have extensive experience navigating table-rated cases for Tennessee residents and know which Tennessee-licensed carriers specialize in various health conditions, including cardiac conditions, cancer history, diabetes, and other impairments. The variation between carriers for table-rated conditions in Tennessee's competitive marketplace can be significant, making expert carrier selection one of the most valuable services for substandard-rated applicants.
Explore Table Rating in Detail
Get answers to specific questions about table rating.
Related Glossary Terms
Substandard Rated
A risk classification for life insurance applicants whose health or lifestyle factors present higher-than-average mortality risk, resulting in premium rates above standard through table ratings or flat extras.
Read Definition →Risk Class
A classification assigned during underwriting that groups applicants by their level of mortality risk, directly determining the premium rate for their life insurance policy.
Read Definition →Standard
The baseline risk classification in life insurance underwriting for applicants with average health and mortality risk, serving as the reference point for premium rate calculations.
Read Definition →Underwriting
The process by which an insurance carrier evaluates an applicant's risk factors to determine eligibility, risk classification, and premium rates for a life insurance policy.
Read Definition →Frequently Asked Questions About Table Rating
Most carriers offer table ratings from Table 1 through Table 8 (125% to 300% of Standard mortality), though some offer ratings up to Table 16 (500% of Standard). Beyond the highest table rating, the carrier typically declines coverage. The naming convention varies between carriers; some use letters (A-P) and others use numbers (1-16). The incremental increase is 25% per table regardless of the naming convention.
Yes. Most carriers have a formal reconsideration process where additional medical records, updated test results, a detailed letter from the treating physician, or an attending physician's statement can be submitted. If the new information supports a lower risk assessment, the carrier may reduce the table rating. This process is standard practice and should be pursued when relevant medical improvements or additional context can be documented.
No. A table rating is a permanent percentage increase applied to the base premium for the life of the policy. A flat extra is a fixed dollar amount per $1,000 of coverage, usually temporary (3 to 10 years), applied for specific, time-limited risk factors such as recent cancer treatment. Some policies may have both a table rating and a flat extra charge to address different aspects of the risk profile.
Table ratings significantly increase the total premium cost over the life of the policy. A Table 2 rating adds 50% to the Standard premium each year. A Table 4 rating doubles the Standard premium. For a whole life policy with an annual Standard premium of $10,000, a Table 4 rating results in a $20,000 annual premium, adding $200,000 in additional premium over 20 years. This is why multi-carrier comparison is so valuable for table-rated applicants.
Table ratings on existing policies are generally permanent. Some carriers may offer a one-time reconsideration opportunity if significant health improvement can be documented. However, the most effective approach is to apply for a new policy with a different carrier after your health improves. If approved at a lower table or Standard rates, you can replace the existing policy. An agent in our network can evaluate both options.
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