What Is Substandard (Table Rating)? Definition

Why it matters

Health conditions such as diabetes, heart disease history, or a poor build can lead to a rating. The family still gets coverage, but pays more. A rating may be reviewed later if health improves. Compare several carriers because each weighs conditions differently. Ask the agent how the rating was set and whether it can be reviewed in the future. Rules and wording vary by carrier and by state, so read the offer carefully before you accept.

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.
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.
Flat Extra: A flat extra is an added charge per $1,000 of coverage for a specific risk, such as a hazardous job or hobby. It is billed on top of the regular premium.
Standard: Standard is the underwriting class for applicants with average health and risk for their age. It is the benchmark that other classes are priced against.
Underwriting Class: An underwriting class is the group a carrier places an applicant in after review, such as preferred or standard. Each class has its own premium rate, with healthier groups paying less.

All 241 terms

Why it matters

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