What Is Flat Extra? Definition | Epic Life Glossary

Why it matters

Unlike a table rating, which is a percentage, a flat extra is a fixed dollar charge. It may last a set number of years or for the whole policy. Examples include aviation, scuba diving, or some health history. Carriers differ on when they charge it, so ask for the rule in writing.

Source: naic.org

Related terms

Table Rating: A table rating is a premium increase for higher than standard risk, shown with letters or numbers. Each step usually adds about 25 percent to the standard rate, though carriers differ.
Substandard (Table Rating): Substandard, or table rated, means an applicant has higher than average risk. The carrier offers coverage at an increased premium, usually shown as a percentage above the standard rate.
Rated Policy: A rated policy is a life insurance policy issued at a higher premium than standard because of health or other risk. The extra cost is called a rating.
Premium: A premium is the amount you pay to keep an insurance policy active. You can pay it monthly, quarterly, semiannually, or annually, depending on the carrier.
Underwriting: Underwriting is the process a carrier uses to review an application, judge the risk, and decide whether to offer coverage and at what price. It looks at health, age, habits, and history.

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