Principal, LifeNet Insurance Solutions, Redmond, WA
Life insurance underwriting has many classes from so-called "preferred plus" all the way to "decline". Table ratings generally go from table 1 (also called table A) up to table 8 with some carriers even higher.
Table rates add a multiple of the "standard" rate in most cases. Table ratings generally are used only on even numbered multiples. That is, table 2, 4, etc. For a complete explanation including your particular health issues, speak with a good independent agent knowledgeable in heath issues and will access to a good independent underwriter.
Table B on your life insurance means that you had some type of risk factor that caused you to be charged a little more than Standard rates. You could have been rated table B due to weight, or a health condition, or some other type of risk factor.
With most companies, one table rating adds 25% of the Standard rate onto the Standard price. So a table B would cause your rate to be about 50% higher than Standard (table B is the same as table 2). The table rating for some companies adds more than 25%, for some companies it adds less than 25%, and some add it onto a rate other than Standard.
While no one likes to pay a higher rate, table ratings are really a very good thing because they allow you to get a policy even though you cannot qualify for the Standard rating.
Co-Founder, TermInsuranceBrokers.com, Goldenzweig Financial Group, Las Vegas, Nevada
A “Table B” or “Table 2” life insurance rating is generally equal to the “standard” rating plus an additional 50% premium. As a rule of thumb, each table a carrier adds to a standard rating is a 25% increase in premium over the premium for a standard risk class. Some life insurance companies use different rating systems than others, but this is generally the industry standard.
Every life insurance company has different underwriting, so while you may have been offered a Table B rating by one company, you might be able to get a better rate, including standard or even preferred, with another company.
If you have been assigned/offered a Table B risk classification on your life insurance application, it is likely due to the one of the following:
1) Elevated weight to height profile
2) Abnormal blood pressure readings
3) Abnormal cholesterol readings
4) Abnormal lab results, including A1C hemoglobin levels or elevated liver functions
5) Abnormal EKG reading
6) Diabetes
7) History of cancer
8) History of heart issues or heart disease
9) Sleep apnea, including use of a CPAP or Bi-PAP machine
10) Other disease or disorder
11) A combination of the above conditions
You may be thinking at this point that it would be a good idea to just apply for another policy with a different company and the results are better next time. DO NOT DO THIS!!! Every time you apply for coverage, the result of the underwriting gets entered in to the Medical Information Bureau database. When a carrier sees you have applied for coverage with multiple carriers and they each offer you a table rating, the less likely your odds are to get a better offer because it's sort of like a red flag to other carriers.
Before applying with any other insurance companies, you need to consult with a life insurance broker who has a strong background in high risk life insurance. A broker can shop your case informally to determine which carrier will work best for your specific medical history.
I hope the information is helpful - please feel free to contact me for help and if you have any other questions. Thanks very much.
Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
Life insurance is all about mathematics. There is a mountain of historical data that enables a company to develop “standard” rates. The company also employs an underwriter who reviews your application to determine if you meet the definition of “standard.” If you have been offered a “table” rating that means that the underwriter feels that your longevity is impaired. In other words, the underwriter thinks that you will die earlier than others in your age group. Most people offered table rates are aware of the conditions that would cause the company to take this action. Table ratings are often reviewable and can be removed.
President, The Firm of Steven H. Kobrin, LUTCF, 6-05 Saddle River Rd #103, Fair Lawn, NJ 07410
Insurance companies tend to assign policyholders into a risk group - high risk, low risk, average risk, etc. Life insurance companies really have only two risk classes: standard and preferred. Within these classes you can have subclasses: standard smoker. Standard non-smoker. Preferred smoker. Preferred non-smoker. And you can have preferred best and standard best subclasses as well.
Table ratings are typically assessed on top of the standard underwriting class. The rating means that you basically are considered a standard risk, but due to one or more other factors, your risk is higher than the average standard risk. Insurance companies vary in how they weigh each table, but typically, each table represents a 25% increase in price over standard. So, if your standard premium is $1000 per year, a table A rating would make that premium $1250. A table B rating would make that premium $1500. And so on.
I have seen carriers assist table ratings for all types of reasons. These include a high PSA; history of heart attack; build; alcohol history; driving record; mountain climbing; prior drug use; cancer history; scuba diving; aviation; foreign travel. Basically, you could take a look at every one of the questions on your insurance application, and depending on your answer, an insurance carrier may want to assess extra premium.
On the overall, I think that system works in favor of the consumer. You are still able to get coverage. The system is much better than a black or white, take-you-or- leave- you set up.
In addition, I think that by and large these extra premiums are assessed fairly. Obviously, the broker needs to hook you up with the carrier that will most aggressively apply its underwriting guidelines in your case. One carrier may only assess a table B, but another one might be a table G! Still another one might decline you altogether. Your broker needs to be your guide in fending your way through the life insurance carrier jungle out there :)
One other important note here: carriers sometimes have “sales” on policies through what are called “table shaving discounts.” This means that for certain types of cases, for a set period of time only, they will make an offer of standard to somebody who normally would be assessed a table rating. They usually cap it at table D or so. And they usually limit it to only permanent insurance such as universal life.
Sales like this can give consumers really good bargains. Basically, you could buy a permanent product for a lower cost than a term product simply because the underwriting concessions wouldn’t be available on the term product.
I would also like to add that carriers typically go up to table L or so. When I have a client who represents a very high risk due to a serious medical condition or dangerous hobby, I like to see how high I can get a carrier to go with a table rating. I mean, if somebody really needs the coverage and has the money to pay for it, why not put hit with the premium to make it worth your while?
It’s fun to see how hungry carriers can be for somebody’s business :).
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Table rates add a multiple of the "standard" rate in most cases. Table ratings generally are used only on even numbered multiples. That is, table 2, 4, etc. For a complete explanation including your particular health issues, speak with a good independent agent knowledgeable in heath issues and will access to a good independent underwriter.
With most companies, one table rating adds 25% of the Standard rate onto the Standard price. So a table B would cause your rate to be about 50% higher than Standard (table B is the same as table 2). The table rating for some companies adds more than 25%, for some companies it adds less than 25%, and some add it onto a rate other than Standard.
While no one likes to pay a higher rate, table ratings are really a very good thing because they allow you to get a policy even though you cannot qualify for the Standard rating.
Every life insurance company has different underwriting, so while you may have been offered a Table B rating by one company, you might be able to get a better rate, including standard or even preferred, with another company.
If you have been assigned/offered a Table B risk classification on your life insurance application, it is likely due to the one of the following:
1) Elevated weight to height profile
2) Abnormal blood pressure readings
3) Abnormal cholesterol readings
4) Abnormal lab results, including A1C hemoglobin levels or elevated liver functions
5) Abnormal EKG reading
6) Diabetes
7) History of cancer
8) History of heart issues or heart disease
9) Sleep apnea, including use of a CPAP or Bi-PAP machine
10) Other disease or disorder
11) A combination of the above conditions
You may be thinking at this point that it would be a good idea to just apply for another policy with a different company and the results are better next time. DO NOT DO THIS!!! Every time you apply for coverage, the result of the underwriting gets entered in to the Medical Information Bureau database. When a carrier sees you have applied for coverage with multiple carriers and they each offer you a table rating, the less likely your odds are to get a better offer because it's sort of like a red flag to other carriers.
Before applying with any other insurance companies, you need to consult with a life insurance broker who has a strong background in high risk life insurance. A broker can shop your case informally to determine which carrier will work best for your specific medical history.
I hope the information is helpful - please feel free to contact me for help and if you have any other questions. Thanks very much.
Table ratings are typically assessed on top of the standard underwriting class. The rating means that you basically are considered a standard risk, but due to one or more other factors, your risk is higher than the average standard risk. Insurance companies vary in how they weigh each table, but typically, each table represents a 25% increase in price over standard. So, if your standard premium is $1000 per year, a table A rating would make that premium $1250. A table B rating would make that premium $1500. And so on.
I have seen carriers assist table ratings for all types of reasons. These include a high PSA; history of heart attack; build; alcohol history; driving record; mountain climbing; prior drug use; cancer history; scuba diving; aviation; foreign travel. Basically, you could take a look at every one of the questions on your insurance application, and depending on your answer, an insurance carrier may want to assess extra premium.
On the overall, I think that system works in favor of the consumer. You are still able to get coverage. The system is much better than a black or white, take-you-or- leave- you set up.
In addition, I think that by and large these extra premiums are assessed fairly. Obviously, the broker needs to hook you up with the carrier that will most aggressively apply its underwriting guidelines in your case. One carrier may only assess a table B, but another one might be a table G! Still another one might decline you altogether. Your broker needs to be your guide in fending your way through the life insurance carrier jungle out there :)
One other important note here: carriers sometimes have “sales” on policies through what are called “table shaving discounts.” This means that for certain types of cases, for a set period of time only, they will make an offer of standard to somebody who normally would be assessed a table rating. They usually cap it at table D or so. And they usually limit it to only permanent insurance such as universal life.
Sales like this can give consumers really good bargains. Basically, you could buy a permanent product for a lower cost than a term product simply because the underwriting concessions wouldn’t be available on the term product.
I would also like to add that carriers typically go up to table L or so. When I have a client who represents a very high risk due to a serious medical condition or dangerous hobby, I like to see how high I can get a carrier to go with a table rating. I mean, if somebody really needs the coverage and has the money to pay for it, why not put hit with the premium to make it worth your while?
It’s fun to see how hungry carriers can be for somebody’s business :).