Life insurance table ratings are a classification reserved for individuals that did not qualify for the top rates. This disqualification might be due to serious medical conditions, a risky occupation or even a dangerous lifestyle. In fact, any factor that can contribute to your untimely death puts you in the table ratings.
How does life insurance table ratings work?
When you qualify for a table rating, you are either given a letter or number which represents your rating. Depending on the life insurance firm, the number and letter usually ranges from 1-16 and A – P respectively. Typically, each number or letter adds an additional 25% fee on top of your standard premium rates. Now let’s assume you were given an “A” table rating by your insurer. This means you will pay an extra 25% charge in addition to the standard rate of your life insurance policy. As you go up the numbers or letters, an extra 25% fee is added to your standard rate. For instance, if you are given a “J” table rating, expect to pay a 250% charge plus the standard rate of your plan.
What can I do about my life insurance table ratings?
If you are not happy with your table rating, there are actions you can take to change it. We have given some of those options below:
- Ask for reconsideration
Table ratings are not set in stone; they can be changed. However, doing this will depend on what caused the table rating. So, if your table rating was due to a heart issue that occurred 2-years ago, you can get a better rating as long as your symptoms have improved. Simply contact us or your life insurance agent to help you file for reconsideration.
- Shop around
Each life insurance organization has its unique table ratings process. There is no standard table ratings system in the insurance industry. Therefore, if your preferred insurer has given you an unfavorable table rating, feel free to get another policy from other life insurance companies. Who knows, you might get a better table rating or even qualify for the top rates.
- Change your level of coverage
If the other options do not work, then change your coverage level. By changing the duration of your policy or reducing the face amount of your life insurance plan, you can lower your coverage cost.