Table rating

A table rating is how insurers price applicants whose health or lifestyle puts their expected mortality above standard. Instead of declining, the underwriter assigns a table, numbered (Table 1, 2, 3) or lettered (Table A, B, C), and each step usually adds 25 percent of the standard premium. Many insurers' tables run to Table 8 or 10, and some go higher, before a case is declined.

The usual formula is rated premium = standard premium times (1 + 0.25 times the table number). Hypothetically, if standard costs $60 a month, Table 2 costs $90, Table 4 costs $120 and Table 8 costs $180. Conventions vary, since some insurers apply the extra to the mortality charge rather than the full premium, so the exact cost shows up only in the quote. Table ratings usually apply for the life of the policy, unlike a flat extra, which is often temporary.

Typical reasons include diabetes, heart disease, obesity, poorly controlled sleep apnea or a cancer history. Because insurers weigh conditions differently, the same applicant can be Table 4 at one company and standard at another, and some insurers will reconsider a rating after improved health. See table ratings and flat extras explained and asking for a better rate class later.