How Underwriting Really Works (And Why Your Rate Class Matters More Than You Think)

You see a slick quote widget and a low monthly number. Then underwriting steps in and the price changes. Frustrating, right? I’m a licensed life insurance agent, and I want to show you what actually happens behind the curtain, why your rate class drives most of the bill, and how to put yourself in the best lane before you click “apply.”

Plain English, zero scare tactics, lots of quick wins.

What underwriting really is

Underwriting is the carrier’s risk check. They’re asking one question: “Given your health, history, and lifestyle, what class should we place you in, and what price fits that class?” That class can swing your monthly cost more than the face amount or term length in many cases.

Carriers sort people into buckets:

• Preferred Plus (top)
• Preferred
• Standard Plus
• Standard
• Tables A–H (1–8) when risk is above Standard
• Flat extras for certain hobbies or jobs (an added dollar charge per $1,000 of coverage, sometimes temporary)

Same person, different company, different result. Rulebooks vary. That’s why “shopping your profile,” not just “shopping price,” saves real money.

What carriers actually check

You might not do labs. Many still look at data sources:

• Rx database: current and past prescriptions, dates, prescribers
• MIB: codes from prior life/health apps
• MVR: driving (DUIs, reckless, clusters of tickets)
• Credit and identity screens: anti-fraud checks
• Medical records: sometimes a short doctor summary; sometimes a full APS
• Vitals/labs: if you do an exam, they’ll review A1C, lipids, liver enzymes, nicotine (cotinine), blood pressure
• Lifestyle: nicotine or vaping, alcohol patterns, aviation, climbing, scuba, motorsports, long trips abroad
• Family history: early cardiac or certain cancers in a parent or sibling
• Finances: does the face amount match income, assets, or business need?

None of this is about perfection. It’s about fit. A carrier that smiles at your story can place you higher than a carrier that doesn’t.

Why rate class matters more than you think

Let’s say a sample $1,000,000 / 30-year term:

• Preferred Plus: lowest price
• Drop one class to Preferred: often +10–20%
• Drop to Standard: often +40–60% from top
• Add Table 2: often +25% on top of Standard

These are not exact numbers; they’re the feel of the jumps. One notch up or down can move thousands over the life of the policy. That’s why a short prep and the right carrier list are worth it.

The two underwriting paths: accelerated vs exam

Accelerated (no nurse visit)

• Uses databases and a brief phone or online interview
• Fast decisions, great for many ages/amounts
• Pricing can match fully underwritten when the file is clean

Quick exam

• A 20–30 minute nurse visit with blood/urine and vitals
• Best for people whose labs will help the class (fit runners, well-controlled numbers)
• Can cut $10–$20+ per month on longer terms

Smart move: price the same specs both ways and pick with a calculator, not a guess.

What bumps you up a class

• Nicotine timeline: clean 12–24 months moves you from tobacco to non-tobacco with many carriers. Write down your quit date.
• Blood pressure routine: take meds as prescribed, book a morning exam at home, sit quietly 5 minutes, ask for a second reading, bring home logs.
• Lipids/A1C: hydrate the day before; avoid salty meals, energy drinks, and all-out workouts right before the draw.
• Sleep apnea: treatment with usage reports often grades well; untreated cases slide down.
• White-coat spikes: relaxed setting + two readings + home logs beat a single rushed number.
• Driving: let violations age off if you can, consider a defensive driving course certificate.
• Rx context: if a med ended, give the stop date; if you take a med for prevention, say so. Short doctor notes help.

What can push you down a class (even if you feel great)

• Vaping or nicotine in any form (cotinine flags labs)
• Recent DUI or reckless
• Stacked prescriptions from multiple prescribers without a summary
• New diagnosis with no follow-up yet
• Climbing, diving, private piloting, motorsports without a rider or safety history
• Long foreign travel to certain regions without details
• Face amount that doesn’t match income or purpose

None of these are automatic declines. They’re signals that call for the right carrier or a little timing.

The files that get slowed or declined—and how we fix them

“Clean health, messy Rx”

Old meds or overlapping doctors make the database look risky.

Fix: one-page clinician note: diagnosis, current status, meds/doses, control, follow-up plan. Add stop dates for old meds.

“Ex-vaper at 14 months nicotine-free”

Some carriers require 24 months for the top class; others allow non-tobacco at 12 with clean data.

Fix: pick the friendlier rulebook. Same person, lower bill.

“New issue in the last 60–90 days”

Underwriters want stability.

Fix: brief postponement, get follow-up labs, re-apply with better proof.

“Driving hit”

A recent DUI is often a temporary no.

Fix: mark the re-apply date (often 12–24 months from conviction). Line up an exam and clean follow-ups.

“Coverage ask out of sync with income”

They need to see the purpose.

Fix: tie face to income years, mortgage, kids/care, business need; supply simple docs for bigger cases.

Table ratings and flat extras in plain English

• Table ratings add a percentage to Standard rates when risk is higher. Many are revisitable after weight loss, clean labs, or time since a diagnosis.
• Flat extras add a dollar amount per $1,000 for defined risks (e.g., private aviation, certain cancers) and can be temporary. Once the time window passes or training changes, that extra may fall off.

Always ask: “Is this table/flat extra temporary, and when can we review it?”

Why the carrier choice beats most hacks

Two carriers can treat the same facts differently:

• Kinder build chart vs tighter one
• Non-tobacco at 12 months nicotine-free vs 24
• Treated apnea welcomed vs side-eye
• BP on a common med at Preferred vs Standard Plus
• Family history rules that stop at certain ages vs rules that linger

This is where an independent agent earns their keep: not by “selling” but by matching your story to the right rulebook and labeling why each carrier fits you.

The five-minute pre-screen that saves weeks

Copy/paste this into a note and answer in bullets:

• Age, state, coverage goal, and a monthly range that feels comfortable
• Height/weight (morning weight is fine)
• Last known BP and lipids if you have them
• Rx list: name, dose, reason, stop dates for old meds
• Nicotine/vaping timeline (real quit date)
• Driving: DUIs or 3+ tickets in 3–5 years?
• Hobbies: pilot, scuba, climbing, racing
• Travel plans longer than 30–60 days
• Past apps or declines in the last 24 months?

With that one page, I can pick carriers that actually like you, and we can decide no-exam vs quick exam with real numbers.

No-exam vs exam: how to choose in one minute

Ask for the same specs both ways:

• Face amount
• Term length
• Billing mode
• Riders

If the exam saves a meaningful monthly amount on a long term, do it. If the gap is tiny and life is busy, go accelerated. Either path can be great; the key is the apples-to-apples view.

Your rate class playbook (before you apply)

1. Lock your specs: face, term, billing mode, riders
2. Pick carriers on purpose: 2–3 that fit your build, BP med, nicotine timeline, or apnea status
3. Decide path: no-exam and exam both priced the same way
4. Prep the file: Rx list with stop dates, any doctor note, home BP log if you get white-coat spikes
5. Check face tiers: $500k vs $450k, $1M vs $900k—sometimes more coverage costs about the same
6. Get the rider sheet: dollars per month and a one-line trigger for each add-on
7. Note your term conversion window and eligible permanent menu; ask for a $50k example in dollars

Seven steps. Clean decisions.

If you already applied and the class came back low

• Ask for the reason in writing (adverse action note)
• Reconsideration: send the missing context (doctor note, BP log, stop dates, compliance report)
• Pivot: move to a carrier with friendlier rules for your profile
• Postpone: if timing is the issue (fresh diagnosis or DUI), mark the re-apply date
• Right-size: adjust face/term to your budget while you work toward a class improvement

Don’t shotgun new apps everywhere. Targeted moves beat volume.

How much coverage should you pick while you chase a better class?

Use a quick formula that actually fits real life:

Coverage = Income Years + Debts + Kids & Care + Final Costs − Savings − Existing Coverage

If the “perfect” number stretches your budget, pick a monthly range and buy the most protection inside that range. You can ladder to match the curve:

• Example: $750k for 20 years + $250k for 30 years
  High protection while expenses peak, a lighter layer through college and beyond.

Mini stories that show how class drives price

Runner, no-exam vs exam
No-exam: Standard Plus. Short exam bumped labs into Preferred. Saved ~$15/month for 30 years. Same coverage, thousands saved.

Ex-vaper at 13 months
Carrier A said tobacco for 24 months. Carrier B honored 12 months clean. Approved at non-tobacco with strong pricing.

Apnea with great compliance
Without data: Standard. With machine usage reports: Preferred at a carrier that welcomes treated apnea.

White-coat BP
Clinic numbers were high. Morning home exam with second reading plus a two-week log landed a better class.

Scripts you can copy (they work)

To your agent
“Please quote $[amount] for [term length] with the same specs across 2–3 carriers. Label each with why it fits my profile (build/BP med/nicotine timeline/apnea). Include no-exam and exam pricing, monthly-EFT and annual totals, the next face tier, a one-page rider sheet, and my term conversion deadline with a $50k example.”

Doctor note request
“Could you write a brief summary for life insurance underwriting with diagnosis, current status, meds/doses, last visit, recent labs if any, and a line that my condition is stable with routine follow-up?”

Reconsideration
“Please reconsider app #[number]. Attached are my clinician summary, BP log, and Rx stop dates. These address the reasons listed in your note.”

What working with me looks like

1. Five-minute pre-screen that captures the key facts and your budget
2. Carrier picks that match your profile, each labeled with the reason it fits
3. Same-spec quotes, no-exam and exam, plus the next face tier
4. Rider sheet in dollars, not buzzwords
5. Straight e-app, clear status updates, and help with any doctor notes
6. After approval: beneficiary cleanup, calendar reminders for draft dates and conversion timing, and yearly check-ins for class improvements or face changes

You’ll know exactly why your price is what it is and where to push if you want it lower.

Bottom line

Underwriting isn’t a mystery; it’s a set of rulebooks. Match your story to the right one, prep a few pages of context, and your rate class does the heavy lifting on cost. Do that, and the low quote you saw at the start is far more likely to be the price you lock for decades.

If you want help, send your age, state, coverage goal, a monthly range, height/weight, nicotine timeline, Rx list with stop dates for old meds, and any hobbies or travel notes. I’ll reply with carrier picks labeled for your profile, apples-to-apples numbers, and the fastest path to the class you deserve.