This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Understanding Life Insurance Table Ratings





In life insurance lingo, a "table rating" refers to the life insurance premiums charged to people who cannot qualify for standard rates. Life insurance companies identify their tables in various ways, such as Table 1, 2, 3 and above or Table A, B, C, etc.

"Table ratings can be given for medical and non-medical conditions," says Thomas Bigoski, owner of the Bigoski Insurance Agency in Gainesville, Va. "Some examples include high blood pressure, cancer, diabetes and your combined height and weight, especially obesity. Other issues could be a history of mental illness or your occupation." (See: " How much can you save on life insurance by losing weight?")

A life insurance applicant with a history of multiple convictions for driving under the influence or someone who pilots small planes could also receive a table rating, says Maureen Leydon, vice president and chief underwriter for MetLife in Boston.

Anything that increases the likelihood of premature death can trigger a table rating.

Table ratings and insurance premiums

Bigoski says table ratings add to the applicant's premiums incrementally, typically by 10, 25 or 50 percent above the standard premium. (See: " That'll cost ya: 7 deadly insurance sins.")

"For example, if a standard premium for a term life policy is $100, if someone has a table rate of 1, they might pay 25 percent above the standard rate, or $125 per month," says Bigoski. "If they have a table rate of 2 they might pay 50 percent above the standard rate, or $150 per month."

Leydon says that the size of the premium increase varies by insurance company and by life insurance product.

Life insurance companies typically assign debits and credits based on your medical history and other factors when calculating your premiums. For instance, if you have heart disease or cancer, that would be a debit -the more debits you have, the more costly your premiums. If, however, you receive a credit for healthy blood pressure and cholesterol, these credits would decrease your premium.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

DOW 18,232.02 -53.72 -0.29%
S&P 500 2,126.06 -4.76 -0.22%
NASDAQ 5,089.3620 -1.4320 -0.03%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs