A table rating is the substandard classification a life insurance company assigned at underwriting, meaning the applicant was approved but priced above standard rates because of a health or lifestyle risk. Carriers label the steps with either letters (Table A through Table H and beyond) or numbers (Table 1 through Table 8 and beyond), and each step adds roughly 25% to the standard mortality charge.
So a Table 4 policy carries mortality costs around 100% higher than a standard policy for the same face amount and age. That is why the premium felt expensive from day one. Families often assume the rating was a punishment. It was really the carrier writing down, in its own records, that this person’s health was worse than average on the day the policy was issued.
That written record turns out to matter a great deal if the policy is ever sold. This page defines the term, explains how a table rating shows up in a real transaction in 2026, clears up the most common misunderstandings, and works through a labeled hypothetical.
In This Article
The Precise Definition
Underwriters sort applicants into classes. Preferred plus, preferred and standard are the healthy tiers. Anything below standard is substandard, and substandard cases are expressed as table ratings. The convention is a ladder: Table A/1, B/2, C/3, D/4, and upward, with each rung adding about 25 percentage points of extra mortality cost over standard.
Some carriers use letters, some use numbers, and a few use both on the same document. Table B and Table 2 mean the same thing. A separate mechanism, the flat extra, adds a fixed dollar amount per thousand of coverage for a temporary risk such as a recent surgery or a hazardous hobby, and it can appear alongside a table rating.
A table rating is set at issue and, on most permanent policies, does not change afterward even if the insured’s health improves or worsens. Some carriers will consider a request to remove or reduce a rating after several claim-free years, but that is a carrier-by-carrier practice worth verifying rather than assuming.
Why It Matters If You Are Considering Selling a Policy
Life settlement buyers price a policy on projected life expectancy. A shorter projected life expectancy means fewer years of premium for the buyer to pay and an earlier payout, which pushes the offer up. Anything that documents a real impairment therefore tends to help the seller, not hurt them.
A table rating is exactly that kind of documentation, and it comes from a disinterested source: the carrier’s own underwriters, working from a full medical exam, labs and physician records at the time of issue. It is contemporaneous evidence that the insured was not an average risk.
Here is the part that surprises people. The feature that made the policy painful to own is the feature that can make it valuable to sell. A heavily rated policy is often the one the family most wants to stop paying for and the one the secondary market is most interested in buying.
How a Table Rating Shows Up in a Real Transaction
The rating is usually printed on the policy specifications page, sometimes worded as “rate class,” “risk class” or “mortality classification.” On older paper contracts it may appear only on the original application acceptance or on an amendment attached at delivery. Annual statements frequently omit it entirely, which is why the original policy pages are worth digging out of the file cabinet.
When a case is submitted, the file typically includes the policy cover page, a current carrier statement, an in-force illustration and a signed HIPAA authorization. Adding the pages that show the rating class costs nothing and gives the underwriter reviewing the case an immediate reason to look harder at the medical records.
Life expectancy underwriters do not simply copy the carrier’s old table rating. They pull current medical records and build a fresh mortality assessment. The old rating is a signal that tells them where to look, not the answer itself.
| Table Rating | Numeric Equivalent | Approximate Extra Mortality | What It Usually Signals |
|---|---|---|---|
| Standard | — | 0% | Average risk for age and gender |
| Table A | Table 1 | About 25% above standard | A mild, controlled condition |
| Table B | Table 2 | About 50% above standard | A documented but managed impairment |
| Table D | Table 4 | About 100% above standard | A significant chronic condition |
| Table F | Table 6 | About 150% above standard | Serious or combined impairments |
| Table H | Table 8 | About 200% above standard | Near the edge of insurability at issue |
Common Misunderstandings
“A table rating means my policy is damaged goods.” No. The policy pays the same death benefit as a standard policy with the same face amount. Only the price was different.
“My health improved, so the rating should be gone.” On most in-force permanent policies the rating stays. Ask the carrier whether it will reconsider, but do not count on it.
“A rating will make buyers avoid my policy.” The opposite is usually true. Buyers decline policies because the insured looks unusually healthy for their age, the face amount is too small, or the term policy cannot be converted.
“Table 4 means my premium is 4 times higher.” No. Each table step adds roughly 25% to the mortality charge, not to the whole premium. Because a permanent premium also includes expense and reserve components, the total premium usually rises by much less than the mortality charge does.
A Worked Example (Hypothetical Numbers)
The following figures are illustrative and rounded. They are not an offer, a quote or a prediction.
Assume a hypothetical 76-year-old with a $500,000 universal life policy issued at Table 4 because of documented cardiac disease. The annual premium runs $14,000. The cash surrender value is $18,000. The family is tired of the premium and is preparing to surrender.
In this hypothetical, the settlement market reviews the file, sees the original Table 4 classification, orders current records that confirm the condition has progressed, and offers $95,000. That is 19% of the $500,000 face amount, comfortably inside the 10% to 35% range the GAO documented in its 2010 report on life settlements (GAO-10-775), and more than five times the $18,000 surrender value, inside the 4x to 8x range that same report described.
The rating did not create the value. The underlying health condition did. But the rating is what told everyone in the process where to look.
What to Pull Out of Your File
Four documents do most of the work: the policy cover page and specifications page showing the face amount and rate class, the most recent annual statement, an in-force illustration requested from the carrier, and any amendment or rating notice attached when the policy was delivered.
If the original pages cannot be found, the carrier’s policyholder service line can usually reissue a policy summary. Ask specifically for the rate class or risk classification, since a standard summary may not include it.
Related Terms Worth Knowing
A table rating is one input into a much larger valuation. Life expectancy underwriting turns medical records into a mortality projection. Verification of coverage confirms with the carrier what the policy actually is today. Fair market value describes the price the secondary market establishes, which is a different number from cash surrender value.
Pine Lake Life Solutions offers a free, no-obligation policy review. Send the policy cover page and we will tell you whether the policy looks like a candidate. Call (305) 209-7183. This page is education only, not legal, tax or investment advice, and rules vary by state.
Frequently Asked Questions
What does a Table 4 rating on a life insurance policy mean?
It means the carrier approved the applicant but classified the risk four steps below standard. Each step adds roughly 25% to the mortality cost, so Table 4 reflects about double the standard mortality charge. The death benefit itself is unaffected.
Does a table rating increase what a buyer will pay for my policy?
It can. Buyers price on projected life expectancy, and a table rating is contemporaneous evidence from the carrier’s own underwriters that the insured was a worse-than-average risk. The current medical records drive the final number, but the rating tells underwriters where to look.
Can a table rating be removed from an existing policy?
Sometimes. Some carriers will consider a reconsideration request after several years of improved health, but many will not change a rating set at issue. Ask the carrier directly and verify its current 2026 policy before assuming.
Where do I find my table rating?
Look at the policy specifications page or the original application acceptance, under a heading like rate class, risk class or mortality classification. Annual statements often leave it out, so you may need the original contract pages or a policy summary from the carrier.
Is a flat extra the same thing as a table rating?
No. A flat extra adds a fixed dollar amount per thousand of coverage, usually for a temporary risk such as a recent procedure or a dangerous hobby, and it often expires after a set number of years. A table rating is a permanent multiple of standard mortality cost.
Will a table rating make my policy ineligible for a settlement?
No. Policies are more often declined because the face amount is under $100,000, the insured is unusually healthy for their age, or a term policy cannot be converted. A rating is generally a point in the seller’s favor.
Should I mention the rating when I request a policy review?
Yes, and include the pages that show it. It costs nothing to send and it gives the reviewer a concrete starting point. Send the policy cover page along with it and call (305) 209-7183 with questions.
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Related Reading
- What Policies Qualify For Life Settlement
- Life Settlement Vs Surrender
- What Is A Qualifying Life Settlement
- What Is Policy Fair Market Value
- What Is Verification Of Coverage
- Education Center
Pine Lake Life Solutions does not purchase life insurance policies and does not provide legal, tax, or investment advice. Information provided is for educational purposes only. Eligibility for any option, including life settlements, is not guaranteed and depends on individual circumstances, policy terms, underwriting, and market conditions. Consult independent legal, tax, or financial professionals before making decisions regarding a life insurance policy.