Life Insurance Table Ratings: What They Mean for Your Premium

Table ratings (also called table rated or substandard ratings) are a method carriers use to price policies for applicants who do not qualify for standard risk classifications due to health conditions, lifestyle factors, or other risk considerations. Rather than declining the applicant, the carrier offers coverage at an increased premium. Table ratings represent the insurance industry's approach to extending coverage to a broader population while accurately pricing the additional mortality risk.

Table ratings work on a letter or number system, typically ranging from Table 1 (or Table A) through Table 8 (or Table H), though some carriers extend further to Table 10 or beyond. Each table step adds approximately 25% to the standard premium. Table 1 adds 25%, Table 2 adds 50%, Table 3 adds 75%, Table 4 adds 100% (double the standard premium), and so on. Some carriers use different increments — for example, 15% or 20% per table step — so the exact surcharge varies.

For example, if the standard premium for a policy is $100 per month and you receive a Table 2 rating, your premium would be approximately $150 per month. A Table 4 rating on the same policy would be approximately $200 per month. These figures are illustrative; actual premiums vary by carrier and individual underwriting. Understanding the table rating system helps you evaluate offers and determine whether the additional cost represents reasonable value for the coverage provided.

Common reasons for table ratings include controlled diabetes (particularly Type 2 with A1C levels above certain thresholds), history of heart conditions (with successful treatment such as stents, bypass surgery, or ongoing medication), cancer in remission beyond a specified period (typically 2-5 years depending on the type and stage), obesity with BMI above certain thresholds, sleep apnea (especially if non-compliant with CPAP treatment), high blood pressure requiring multiple medications, certain mental health conditions requiring ongoing treatment, and history of substance abuse with documented recovery.

A table rating is not necessarily permanent. Many carriers offer the opportunity to request a re-evaluation after a specified period (often 1-3 years) if the condition that caused the rating has improved. If your health stabilizes or improves — for example, if you lose significant weight, achieve better blood sugar control, or maintain cancer remission for additional years — the carrier may reduce or remove the table rating, lowering your premium. Some carriers will automatically review table-rated policies at scheduled intervals, while others require a formal reconsideration request.

Importantly, table ratings vary significantly between carriers. One carrier's Table 4 condition might be another carrier's Table 2 or even Standard. This variation exists because each carrier has different underwriting guidelines, different mortality experience, and different risk appetite for specific conditions. Shopping multiple carriers through an agent in our network is essential for minimizing the impact of a table rating. The difference between carriers can translate to hundreds or thousands of dollars per year in premium savings.

Table ratings can also interact with other underwriting adjustments. Some carriers may assign a table rating plus a flat extra premium for certain risk combinations. Others may offer a lower table rating if you agree to an exclusion rider that eliminates coverage for a specific condition. Understanding these options requires the guidance of an experienced agent who can negotiate the best available terms from each carrier.

For applicants who receive table ratings, it is also worth exploring whether the condition that caused the rating qualifies for simplified issue or guaranteed issue products, which do not use table ratings but may have coverage limitations. An agent in our network can help evaluate whether a table-rated fully underwritten policy or a non-medical product provides better overall value for your specific situation.