Life insurance table ratings are expensive, but they don’t have to be!
Many times people who receive a rating will get a better offer by moving to a new life insurer.
Table Rating Overview
In this guide, we show you how to get the lowest table rating possible.
What are Life Insurance Table Ratings?
Table ratings represent an insured’s excess risk to a life insurer due to health issues, occupations, and avocations.
Ratings are numbered (1-16) or lettered (A-P) with each rating adding 25% to a standard rate.
The numbers and letters are interchangeable.
The exception to the 25% rating system is Prudential as we explain later.
Table ratings are not used often for minor health issues such as elevated blood pressure or high cholesterol.
The use of table ratings is common for heart patients and those with other significant chronic health conditions.
Life Insurance Table Ratings Chart
Below is an example of how underwriting table ratings work.
| Table Rating | % | Rating Cost | Total Rate |
|---|---|---|---|
| 1 (A) | 25 | $125 | $625 |
| 2 (B) | 50 | $250 | $750 |
| 3 (C) | 75 | $375 | $875 |
| 4 (D) | 100 | $500 | $1000 |
| 5 (E) | 125 | $625 | $1125 |
| 6 (F) | 150 | $750 | $1250 |
| 7 (G) | 175 | $875 | $1375 |
| 8 (H) | 200 | $1000 | $1500 |
| 9 (I) | 225 | $1125 | $1625 |
| 10 (J) | 250 | $1250 | $1750 |
| 11 (K) | 275 | $1375 | $1875 |
| 12 (L) | 300 | $1500 | $2000 |
| 13 (M) | 325 | $1625 | $2125 |
| 14 (N) | 350 | $1750 | $2250 |
| 15 (O) | 375 | $1875 | $2375 |
| 16 (P) | 400 | $2000 | $2500 |
While most life insurers use 25% ratings, Prudential has its own table rating system.
Click Here for Prudential’s Table Rating Chart
| Table 1 = Table “A” | Add 33% to Standard Rate |
| Table 2 = Table “B” | Add 56% to Standard Rate |
| Table 3 = Table “C” | Add 80% to Standard Rate |
| Table 4 = Table “D” | Add 113% to Standard Rate |
| Table 5 = Table “E” | Add 161% to Standard Rate |
| Table 6 = Table “F” | Add 208% to Standard Rate |
| Table 7 = Table “G” | Add 256% to |
| Table 8 = Table “H” | Add 327% to Standard Rate |
On the surface, it might seem that Prudential is at a disadvantage due to higher percentage ratings.
The
If you are looking at a survivorship policy for estate purposes, it is possible to have one uninsurable client on the policy.
We’ve seen uninsurable ratings from U1-U7, depending on the reason why the individual is uninsurable.
Are Table Ratings Negotiable?
Table ratings are negotiable, but not often.
Life insurance underwriters follow internal and reinsurance guidelines which leave little room for better offers.
In some instances, it may be possible to improve the offer by one table rating if favorable factors exist.
Something that is available are table shave programs.
Table Shave Programs
Table shave programs offer better underwriting if you buy universal life rather than term life insurance.
2021 COVID Update – Many programs are currently suspended.
When available, a table shave program may offer you a universal life policy for a similar price to term life insurance.
AIG – American General – Flex Points Crediting Program – Suspended
Provides a one-table reduction if you meet 4 of their 16 factors.
An example of a factor would be no family history of heart disease.
Lincoln National Table Reduction Program – Suspended
Offers standard rates to people rated up to Table 3.
Principal Healthy LifeStyle Credit and Automatic Standard Approval Programs – Active as of 01/2021
Healthy LifeStyle program – Up to 2 tables may be eliminated.
Certain cases that receive flat extra ratings may also qualify here.
Automatic Standard Approval Program (ASAP) – Insureds rated up to Table 3 may receive a standard offer.
Prudential Rate Reduction Program – Active as of 01/2021
Allows insureds rated up to Table B to receive standard rates.
While technically this is not a table shave program, the bottom line is more favorable offers.
Available for term and permanent life insurance products.
United of Omaha Fit Underwriting Credit Program
Insureds rated up to Table 4 may receive standard life insurance rates.
Term life and universal life insurance policies are available.
United does well when the insured is rated due to build.
Credit programs are not available for non-medical issues such as scuba divers or private pilots.
Should You Accept a Rated Offer?
If you received a table-rated offer, what should you do?
Your options include:
- Decline the Offer
- Accept the Offer
- Temporarily accept the offer
- Reduce the Coverage/ Change the Terms
In most cases, you should probably accept the offer at least on a temporary basis.
We’ll then re-shop the market for you to see if better offers are available.
You may even be able to use your paramedical exam from the first company.
If we find a better offer, you can switch to the new company.
If not, at least you will have coverage in place in the event you are denied life insurance with all other companies.
Conclusion
Our expertise is life insurance underwriting.
The reason why our approach works are that we take the time upfront to understand your medical history.
We use a Quick Quote process that allows us to receive preliminary underwriting feedback in days.
The benefit is that you receive accurate quotes from all the companies that specialize in your medical history.
Keep in mind that there is never any obligation or pressure with our service.
Thank you for your time, we look forward to working with you.
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Michael Horbal
Author
Michael Horbal is the founder and owner of RiskQuoter.com and a licensed life insurance agent who has helped thousands with affordable protection for families and businesses.