Flat Extras – How to Beat This Costly Life Insurance Expense

If your life insurance approval came with an unexpected “flat extra” charge, you’re not alone — and you’re smart to dig deeper.

This guide explains how flat extras impact life insurance policies and offers tips on saving money and selecting the best life insurance company for your unique circumstances.

A flat extra is an additional premium that life insurance companies tack on to your base rate.
It’s usually charged per $1,000 of coverage and reflects the added risk they see in your health, occupation, or hobby.

Quick Tip – Flat extras are typically temporary for medical reasons (such as a history of cancer) but permanent for high-risk jobs or hobbies.

Here’s the formula:

Face Amount ÷ $1,000 × Flat Extra Rate = Extra Yearly Cost

• Example:
  • $100,000 policy
  • Flat Extra = $6 per $1,000 of coverage
  • $100,000 ÷ 1,000 x $6 = $600 flat extra per year

Before accepting any policy, you need answers:

• What’s the exact reason for it?
• What is the cost per $1,000 of coverage?
• Is it temporary or permanent?
• If temporary, how many years will it last?
• Were you also table rated? (Some companies pile on both)
• Did other life insurers also propose a flat extra? If yes, what were their terms?

Pro Tip: Different life insurers view risks differently. Some companies pile on flat extras, while others may approve you at standard rates.

This is where most people run into flat extras – after a cancer history.

• Common scenarios include:
  • Breast cancer survivors
  • Prostate cancer survivors
  • Colon cancer history
  • Melanoma survivors
  • Thyroid cancer survivors
• Flat extras are also common after treatments for:
  • Alcohol or drug abuse history
  • HIV positive

• Important:
  • Flat extras for medical reasons are almost always temporary.
  • Most last 2 to 5 years, depending on how far out you are from treatment.
  • If you’re a few years post-treatment with clean follow-ups, you can often negotiate a lower flat or even have it completely removed when reapplying.

It’s vital to re-shop your life insurance each year when you have a flat extra, as we may find a better offer next year.

Medical flats are not standard for:

• Heart Conditions
• Gastrointestinal Conditions
• Diabetes

Chronic conditions like these will typically receive a table rating instead.

Some jobs come with built-in hazards that scare insurers. Here’s how they usually view it:

• No flat extras needed:
  • Police Officers
  • Firefighters
• Mild to moderate flat extras:
  • Commercial fishermen
  • Miners
  • Loggers
  • Military and Special Forces
• High flat extras (or declinations)
  • Astronauts
  • Race car drivers
  • Boat racers

Your job classification matters. Some companies rate risky occupations less harshly than others.

If you dive, fly planes, skydive, or climb mountains… insurers pay attention.

Experience matters more than anything else.

• They want to know:
  • Are you certified
  • Are you sticking to reasonable limits (not pushing into extreme risk)?
  • Are you being safe, or flirting with danger?
• Example:
  • Scuba diving beyond 100 feet? You might get rated.
  • Cave diving or shipwreck diving? Flat extra is almost guaranteed.
  • Private pilots? Newer pilots get flat extras. Instrument-rated pilots get better offers.

Some insurers may allow you to exclude certain high-risk activities, such as aviation, to waive the flat extra.

• But be careful:
  • If you still participate in that activity and die as a result, they won’t pay the claim.
  • This can escalate into a legal battle, particularly in divorce settlements.

We do not recommend exclusion unless it is a situation where you retired from participating in that activity years ago.

• Don’t accept the first offer you get.
• Know exactly why you’re being charged and for how long.
• Re-shop your life insurance yearly.
• Ask about better companies (some specialize in handling more complex cases).

Next step: Request your no-obligation quote today, and let’s explore better options for you.