Glossary

Substandard rate class

An underwriting class for applicants with higher-than-average mortality risk, who are offered coverage at an extra charge above standard rates.

Also called: rated policy, substandard risk, table-rated policy

A substandard rate class, often called a rated policy, means an insurer will cover you but at a higher price because your expected mortality is above average. Common reasons include significant health conditions, such as diabetes with complications, heart disease or a recent cancer history, a high build, a dangerous occupation or hobby, or a poor driving record.

Insurers price substandard risks in two main ways. A table rating adds a percentage to the standard premium, commonly 25 percent per table. A flat extra adds a set dollar amount per $1,000 of coverage, often for a limited number of years, and is common for temporary or activity-related risks. Hypothetically, a $500,000 policy with a $40 standard premium might cost $80 a month at Table 4, while a $5 flat extra per $1,000 for a pilot would add $2,500 a year.

Being rated isn't the end of the road. Underwriting varies widely between insurers, so shopping a rated case through an independent agent or broker can produce a better offer, and some insurers will remove or reduce a rating after a period of improved health. See table ratings and flat extras explained and Declined for life insurance? What to do next.

Last reviewed October 4, 2026

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Related terms

Table rating An extra charge for higher-risk applicants expressed in numbered or lettered tables, each typically adding 25 percent to the standard premium. Flat extra An added premium charged per $1,000 of coverage for a specific risk, such as a dangerous job, hobby or recent cancer, on top of the base rate. Standard rate class The underwriting class for applicants of average health and risk, priced at an insurer's baseline rather than a discounted preferred rate. Rate class The underwriting category, such as preferred plus, standard or substandard, that sets the price an insurer charges for a given age and coverage. Underwriting The process an insurer uses to evaluate an applicant's risk, from health and lifestyle to finances, and decide whether and at what price to offer coverage.

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