Rate Classes Explained: Preferred, Standard, and Table Ratings in Plain English

You typed your info into a quote form and saw great prices. Then an email arrived with a higher number and a phrase like “Standard Plus” or “Table 2.” What changed? I’m a licensed life insurance agent, and my goal is to translate this in plain English so you know what each label means, what moves your class up or down, and how to land the best offer for your profile.

What a “rate class” actually is

A rate class is the box the insurer places you in after underwriting. That box sets your premium. Think of it as a snapshot of risk today, based on age, health, build, habits, driving, and a few lifestyle items.

Most companies split applicants into two tracks first:

• Non-tobacco
• Tobacco (includes cigarettes; many carriers include vaping here)

Inside each track you’ll see tiers.

Common non-tobacco tiers

• Preferred Plus (top tier)
• Preferred
• Standard Plus
• Standard

Common tobacco tiers

• Preferred Tobacco
• Standard Tobacco

When health findings sit outside these tiers, carriers may add table ratings or flat extras. More on those in a moment.

What moves you between Preferred, Standard, and Tobacco

Carriers look at the same categories, but they score them differently. A few examples:

• Build (height/weight): Each company has its own chart. Two pounds can matter at certain heights.
• Blood pressure and lipids: Stable and controlled readings count, with or without meds.
• A1C and glucose: Good control speaks volumes.
• Nicotine or vaping: Most companies price vaping as tobacco. Quit for 12 months and many consider non-tobacco. Some want 24 months for the very best class.
• Family history: Early coronary disease or certain cancers in a parent or sibling can cap the class at some carriers.
• Medications: The name matters less than control and stability. Well-managed conditions can still reach strong classes.
• Driving record: DUIs, reckless driving, and clusters of violations can limit class for a period.
• Hobbies and travel: Private aviation, technical climbing, and extended trips abroad may require a specialty-friendly carrier.

Two applicants with similar health can land different classes at different companies. That’s why a five-minute pre-screen with me often saves weeks of back-and-forth later.

Table ratings in plain English

A table rating adds a surcharge to the Standard rate when risk sits above Standard but still insurable. Most carriers label tables 1–8 or A–H. Typical math:

• Table 1 (A) ≈ Standard rate +25%
• Table 2 (B) ≈ Standard +50%
• Table 3 (C) ≈ Standard +75%
• …and so on, in steps of ~25%

Example: if a Standard rate is $50/month and the offer is Table 2, the premium often lands near $75/month (50 + 25). Not a penalty. Just pricing for added risk like a recent cardiac procedure, insulin-treated diabetes with good control, or a history of certain cancers in remission.

Can tables drop later? Sometimes. If your health improves and stays stable, we can request a reconsideration or re-shop the case. Results vary, yet it’s worth trying.

Flat extras: a different kind of add-on

A flat extra is a dollar charge per $1,000 of coverage, often temporary. Common reasons:

• Private aviation
• Recent cancer history with ongoing surveillance
• Certain hazardous hobbies

Example: a $2 per $1,000 flat extra on a $500,000 policy adds about $1,000 per year during the flat-extra period. When the period ends, the charge drops off if the carrier set it that way.

“No-exam” vs. “exam” and how classes differ

No-exam (accelerated) underwriting relies on your application, prescription history, driving record, and data checks. Fast and convenient. For many profiles the price matches fully underwritten rates at the same class.

With a brief exam (20–30 minutes at home or work), clean labs can unlock a stronger class. That can shave dollars every month for decades.

Best move: price both paths for your profile. If the exam trims $10–$20 per month on a 20–30 year term, that’s real money. If the gap is tiny and time matters, skip the lab.

Why two carriers can quote the same class but different prices

Even inside “Preferred,” companies set their own rate tables. One might love your build and medication mix. Another might be tougher on the same facts. That’s why targeted shopping beats a one-site spreadsheet.

I’ll often show three contenders with a one-line reason each:

• “Carrier A is friendly on BP meds.”
• “Carrier B prices your BMI better.”
• “Carrier C offers the best conversion window.”

You’ll see the numbers and the rationale.

Mini case studies

Runner on a statin, age 37

• Clean labs, family history of early coronary disease in one parent.
• Carrier X caps class at Preferred due to family history rules.
• Carrier Y allows Preferred Plus with the same history.
• Same health, different rulebooks, lower price at Y.

Ex-vaper, quit 14 months ago, age 35

• Company A still prices as tobacco for 24 months.
• Company B allows non-tobacco after 12 months with clean data.
• Non-tobacco class wins by a mile, even if it’s Standard Plus.

Rock climber, clean health, age 32

• Preferred health everywhere, but several carriers add a flat extra.
• A niche-friendly carrier waives the extra for gym and moderate outdoor grades with safety practices.
• Result: Preferred with no flat extra.

How your class gets set step by step

1. Application: e-sign, health questions, activities, disclosures.
2. Data checks: prescription history, driving record, MIB notes.
3. Exam (if needed): vitals, blood, urine.
4. Medical records: ordered for some cases.
5. Underwriter decision: class assigned; table or flat extra added if needed.
6. You review: accept, pivot to another carrier, or try to supply clarifying info if something looks off.

If a no-exam path flags an item, the carrier may switch to labs mid-process. That isn’t bad news. It’s a second chance to prove a stronger class.

Can you improve a class after issue?

Yes, in a few ways:

• Reconsideration with the same carrier: after weight loss, nicotine-free milestones, better labs, or improved control. Timelines vary.
• Re-shop to a new carrier: if your profile now fits a sweeter niche.
• Remove a flat extra: once the required follow-up period ends or risk changes.
• Convert part of your term: if health took a hit and you want a small lifetime slice without new medical questions (depends on your conversion window).

I set reminders for clients so we don’t miss easy wins.

Quick wins that often move the number

• Face-amount breakpoints: $500k often prices close to $450k; $1M can be near $900k. Ask for the next tier up.
• Annual billing: monthly EFT carries a small modal charge at many companies. Paying yearly trims the total.
• Laddering: heavy coverage early, lighter later. Example: $750k for 10 years + $500k for 20 years + $250k for 30 years.
• Right carrier fit: one loves runners on a statin; another is kinder on BMI; another has generous non-tobacco rules after quitting.

What if you get a table rating?

Don’t panic. Ask for context and options:

• Why that table? Get the specific driver: A1C, build, a test result, records from years ago.
• Any quick fixes? A repeat blood pressure check, a doctor note, or updated labs can help.
• Try another carrier? Some read the same facts more favorably.
• Partial placement: start with the amount you need now; rerun the rest after an improvement.
• Term length tweaks: a shorter term can soften the monthly hit if the table is temporary.

The myths that cost people money

• “I’ll wait until I’m healthier.” Birthdays raise rates. Health swings are unpredictable. Lock a fair class now; request better later if things improve.
• “Group life at work is enough.” Great perk, small amount, tied to your job. Personal coverage follows you everywhere.
• “No-exam is always cheaper.” Sometimes. Not for everyone. Healthy labs can unlock a better class.
• “IUL or fancy riders will ‘pay for the policy.’” Only the contract math decides that. Ask for pages showing guaranteed and current values, not slogans.

A copy-and-paste note that gets you real answers fast

Send this to me and I’ll reply with clean numbers:

1. What health class did you use for my quote, and what class do you expect after underwriting?
2. Price no-exam vs. exam for the same face amount and term.
3. Show two term lengths tied to my mortgage and kids’ ages, plus a laddered option.
4. If I’m near a breakpoint, what’s the price at the next face-amount tier?
5. Any table or flat extra likely for my profile? Explain in one line.
6. Monthly EFT vs. annual totals.

Six lines. Clear decisions.

How I help you land the best class for you

1. Five-minute pre-screen: goals, budget, height/weight, BP history, meds, nicotine or vaping, driving, and any activities carriers care about.
2. Targeted shopping: carriers that like your profile, not a one-size list.
3. Side-by-sides: exam vs. no-exam, two term lengths, ladder idea, next face-amount tier, and exact dollars.
4. Simple e-app: if a quick exam saves real money, I set it up at home or work.
5. After-issue service: beneficiary updates, conversion help, and class reviews if health improves.

You’ll know what you’re buying, why the class landed where it did, and how to improve it later.

Ready to see your real class?

Send your age, state, coverage goal (income, mortgage, kids, final expenses), a monthly range that fits, and any health notes you want me to consider. I’ll reply with real quotes from several carriers, the expected class, and the fastest path to approval.