Table Rating

Receives coverage at a premium above the standard rate to reflect the higher risk — A table rating (or rated policy) is an underwriting outcome in which coverage is issued to an applicant whose risk is greater than standard but still insurable, and the premium is increased above the standard rate to reflect the additional mortality risk. The rating may take the form of an extra premium, a flat additional amount per $1,000, or a higher age rating. The policyowner pays the higher premium in exchange for full coverage; alternatively, some arrangements reduce benefits for the standard premium. A table rating keeps the applicant insured while properly pricing the risk.

National insurance concept

Pay a higher premium reflecting an increased mortality risk — A table rating is the underwriting method used for substandard risks: the premium is increased above the standard rate, often by a set amount per $1,000 of coverage or by rating tables, to reflect the applicant's higher expected mortality. The applicant is not automatically declined, and the insurer does not silently reduce the benefit. Instead, the insurer offers the coverage at a premium priced to the added risk, and the applicant decides whether to accept the rated offer. The rating is disclosed to the applicant before delivery, and the applicant may accept, decline, or seek coverage elsewhere.

National insurance concept