Life Insurance Ratings Explained [2025 Guide]

Shopping for life insurance can sometimes feel like navigating a maze. You know you need coverage to protect your loved ones, but understanding the quotes you receive – why one policy costs more than another, even for the same coverage amount – can be confusing. A big part of that puzzle involves how life insurance companies “rate” applicants. Understanding what a life insurance rating is, how it’s determined, and how it impacts your premiums is crucial for making informed decisions and securing the best possible coverage.

This guide, updated for 2025, will demystify the world of life insurance ratings. We’ll break down the different risk classifications, explore the factors insurers consider, and explain why working with an independent agency is vital for finding the right fit for your unique situation.

Here at Insurance By Heroes, we understand the importance of clarity and trust, especially when it comes to financial protection for your family. Founded by a former first responder and military spouse, and staffed by professionals with backgrounds in public service, we’ve built our agency on the principle of serving those who serve others and their communities. We know firsthand the sacrifices involved and the peace of mind that comes with knowing your family is protected. Because we are an independent agency, we aren’t tied to any single insurance company. Instead, we partner with dozens of top-rated carriers across the nation. This allows us to shop the market extensively on your behalf, comparing underwriting guidelines and premiums to find the policy that best aligns with your specific health profile, lifestyle, and budget – aiming for the most favorable life insurance rating possible.

What Does “Rated” Mean in Life Insurance?

In the context of life insurance, “rated” essentially refers to the process of risk classification, formally known as underwriting. When you apply for a life insurance policy (unless it’s a guaranteed issue policy, which typically comes with higher costs and lower coverage limits), the insurance company undertakes a thorough assessment of your individual risk profile. Their goal is to estimate your life expectancy based on various factors.

Think of it like this: insurance works by pooling risk. The premiums collected from many policyholders are used to pay out death benefits for the few who pass away during their policy term. To keep this system fair and financially stable, insurers need to charge premiums that accurately reflect the level of risk each individual brings to the pool. Someone deemed to have a lower risk of dying prematurely will generally qualify for a better rating and, consequently, lower premiums. Conversely, someone assessed as having a higher risk will receive a less favorable rating and pay higher premiums, or in some cases, may be declined coverage by certain carriers.

Understanding the concept of life insurance rated policies is the first step toward navigating the application process effectively. It helps you anticipate what insurers will look at and sets realistic expectations about the potential cost of coverage. More importantly, it highlights why comparing offers from multiple insurance companies is absolutely essential – something Insurance By Heroes specializes in.

The Life Insurance Rating Spectrum: Risk Classes Explained

Insurance companies categorize applicants into different health or risk classes based on their underwriting assessment. While the specific names of these classes can vary slightly from one carrier to another, the general structure is quite consistent across the industry. Here are the most common life insurance ratings, starting from the best (lowest premium) to the least favorable (highest premium for standard-type policies):

Preferred Plus (Also called Super Preferred, Preferred Best, Elite)

This is the top tier, reserved for individuals in excellent health with squeaky-clean lifestyle factors. To qualify, you typically need:

• Ideal height/weight ratio (BMI).
• Excellent cholesterol and blood pressure readings (often without medication).
• No history of significant medical conditions like heart disease, stroke, cancer (often with a look-back period of 10+ years), or diabetes (Type 1 usually disqualifies, well-controlled Type 2 might sometimes sneak into Preferred with some carriers, but rarely Preferred Plus).
• No tobacco use within the last 3-5 years (sometimes longer).
• Clean driving record (no DUIs or multiple recent violations).
• No hazardous occupations or hobbies.
• Excellent family medical history (e.g., no early deaths of parents or siblings from heart disease or cancer before age 60 or 65).

Applicants in this class receive the lowest possible premiums for their age and coverage amount.

Preferred

This class is for individuals in very good health but who might miss the absolute top tier due to one or two minor factors. This could include:

• Slightly elevated but still well-controlled cholesterol or blood pressure (sometimes managed with medication).
• Height/weight slightly outside the Preferred Plus range but still very healthy.
• Minor, well-managed health conditions.
• No tobacco use within the last 2-3 years.
• Generally excellent family history and driving record.

Premiums for the Preferred class are still very competitive, slightly higher than Preferred Plus but significantly lower than Standard rates.

Standard Plus (Also called Select)

This category represents above-average health. Individuals might have minor health issues that are well-managed or fall slightly outside the Preferred guidelines. Examples include:

• Slightly higher BMI than Preferred ranges.
• Well-controlled common conditions like high blood pressure or cholesterol, possibly managed with medication.
• Perhaps a history of certain less severe health issues resolved some time ago.
• No tobacco use within the last 1-2 years.

Standard Plus premiums are better than Standard rates, offering a discount for being healthier than the average applicant.

Standard

This is considered the baseline rating for individuals with average health and life expectancy for their age. Factors that might place someone in the Standard class include:

• Average height/weight ratio.

*Common health conditions that are generally well-controlled (e.g., high blood pressure, high cholesterol, well-managed Type 2 diabetes diagnosed later in life, mild sleep apnea).

• Perhaps a history of more significant health issues from which they have fully recovered (e.g., certain types of cancer in remission for a significant period).
• No tobacco use typically within the last 12 months (though some carriers offer Standard Smoker rates).

Standard premiums represent the average cost for life insurance coverage.

Substandard (Table Ratings)

Applicants who present a higher-than-average risk due to more significant health conditions, a history of serious illness, certain occupations or hobbies, or other risk factors fall into the Substandard category. Instead of being declined outright by many carriers, these individuals are often assigned a “table rating.”

Table ratings are typically designated by letters (e.g., Table A through Table P) or numbers (e.g., Table 1 through Table 16). Each step up the table represents an additional percentage increase on top of the Standard premium rate. For example:

• Table A or Table 1 might mean Standard premium + 25%
• Table B or Table 2 might mean Standard premium + 50%
• Table C or Table 3 might mean Standard premium + 75%
• …and so on, often up to Table P or Table 16 (Standard + 400%).

While premiums are higher, obtaining a table-rated life insurance policy still provides valuable coverage for individuals who might otherwise struggle to get insured.

Smoker Ratings

It’s important to note that tobacco use is such a significant factor that insurers usually have separate rating classes for smokers (or recent tobacco users). These typically mirror the non-smoker classes: Preferred Smoker and Standard Smoker. Premiums for smokers are substantially higher than for non-smokers in the equivalent health class (often 2-4 times higher or more) due to the well-documented health risks associated with tobacco use.

Crucial Point: The specific criteria for each rating class are determined by the individual insurance carrier. What qualifies for Preferred at Company X might only get Standard Plus at Company Y, or even Standard at Company Z. This variability is precisely why leveraging the expertise of an independent agency like Insurance By Heroes is so beneficial. We understand these nuances and can strategically match your profile to the carriers most likely to offer the best life insurance rating for your circumstances.

Factors Influencing Your Life Insurance Rating

The underwriting process is comprehensive. Insurers gather information from various sources to assess your risk profile accurately. Here are the key factors that determine your life insurance rated classification:

Age

Younger applicants generally pose a lower mortality risk and therefore tend to qualify for lower premiums, assuming all other factors are equal. The cost of life insurance increases significantly as you age, making it advantageous to secure coverage earlier in life.

Gender

Statistically, women have a longer average life expectancy than men. Consequently, women often pay slightly lower life insurance premiums than men of the same age and health status.

Health History and Current Health Status

This is arguably the most significant category. Underwriters meticulously review your medical history, including:

• Current Health Conditions: Diagnosis, severity, treatment, and level of control for conditions like heart disease, high blood pressure, high cholesterol, diabetes (Type 1 or 2), cancer history, stroke, respiratory diseases (asthma, COPD), kidney disease, liver disease, autoimmune disorders, neurological disorders, mental health conditions (depression, anxiety, PTSD), sleep apnea, etc. Consistent treatment and documented control are key.
• Past Major Illnesses/Surgeries: Details about past conditions, treatments, recovery, and any lingering effects are considered. The time elapsed since recovery is often important (e.g., cancer remission periods).
• Medications: Prescription medications you currently take provide insight into your health conditions and their management.

Medical Exam Results (for fully underwritten policies)

Many traditional life insurance policies require a paramedical exam. This typically involves:

• Measurement of height, weight, blood pressure, and pulse.
• Collection of blood and urine samples. These are tested for nicotine, drugs, cholesterol levels (LDL, HDL, triglycerides), blood sugar (A1C), liver and kidney function indicators, HIV, and other potential health markers.
• Sometimes an EKG (electrocardiogram) may be required, especially for older applicants or those seeking large coverage amounts.

Some policies (“no-exam” or accelerated underwriting) may use algorithms and data sources instead of a full exam, but they still thoroughly assess health based on application answers and database checks.

Family Medical History

Insurers are interested in the health history of your immediate biological family members (parents and siblings). A history of early-onset (typically before age 60 or 65) hereditary conditions like heart disease, stroke, certain cancers, diabetes, or kidney disease can potentially impact your rating, even if you are currently healthy.

Lifestyle Choices

Your daily habits and activities play a significant role:

• Tobacco/Nicotine Use: This includes cigarettes, cigars, pipes, chewing tobacco, vaping, and nicotine patches/gum. Any use within the past 12 months usually results in smoker rates. Longer periods of abstinence (1-5 years) are needed for non-smoker rates, with the best rates requiring the longest periods.
• Alcohol Consumption: Moderate alcohol use usually isn’t an issue, but heavy consumption or a history of alcohol abuse can lead to higher ratings or denial.
• Substance Abuse History: Past or present use of illegal drugs or abuse of prescription drugs is a major red flag for insurers.
• Occupation: Certain jobs are considered higher risk (e.g., pilots, loggers, roofers, fishermen, underground miners, law enforcement in certain roles). This might result in a higher premium via a “flat extra” charge or a table rating.
• Hobbies and Avocations: Risky hobbies like scuba diving, private piloting, rock climbing, skydiving, or motorsports racing can also lead to higher premiums or exclusions.

Driving Record

A history of reckless driving, multiple moving violations, or DUIs/DWIs within the past 3-5 years can negatively impact your rating, indicating a higher risk tolerance.

Build (Height and Weight)

Insurers use build charts or Body Mass Index (BMI) calculations to assess whether your weight is within a healthy range for your height. Being significantly overweight or underweight can be associated with increased health risks and may lead to a less favorable rating.

At Insurance By Heroes, we recognize that individuals in demanding professions, like the first responders and military families we often serve, might face unique lifestyle factors or stressors. Our background gives us a deeper understanding, and we work diligently with carriers who may view these factors more understandingly, always striving to secure the fairest life insurance rating possible.

How Table Ratings Work (Substandard Life Insurance)

Receiving a “substandard” or “table rated” life insurance offer means the insurance company has assessed your risk as higher than average, but still within an insurable range for them. It’s crucial to understand that a table rating is *not* a denial; it’s an offer of coverage, albeit at a higher premium than someone qualifying for Standard or better.

As mentioned earlier, table ratings are typically structured using letters (Table A to P) or numbers (Table 1 to 16). Each step up the table corresponds to a specific percentage increase added to the company’s Standard premium rate for your age, gender, and coverage amount. The most common structure involves a 25% increase per table level:

• Table A / 1 = Standard Rate + 25%
• Table B / 2 = Standard Rate + 50%
• Table C / 3 = Standard Rate + 75%
• Table D / 4 = Standard Rate + 100% (Double the Standard rate)
• …and so on.

So, if the Standard annual premium for a policy was $1,000, someone rated Table B (or Table 2) might pay $1,500 per year for the same coverage. Someone rated Table H (or Table 8) might pay $1,000 + (8 * 25%) = $1,000 + 200% = $3,000 per year.

Common reasons for receiving a table rating include:

• Chronic health conditions like well-managed but more serious diabetes, heart disease history, certain types of cancer history, moderate to severe sleep apnea, obesity (higher BMI ranges), hepatitis C, etc.
• Occupational hazards.
• Risky hobbies.
• Poor driving record.

The key takeaway is: don’t assume you are uninsurable if you have health conditions. Many conditions that might have made life insurance difficult or impossible to get years ago are now potentially insurable, often through table ratings. The critical factor is demonstrating stability and consistent management of the condition.

This is another area where Insurance By Heroes provides significant value. We know which carriers tend to offer more favorable table ratings for specific conditions. If one company offers Table F, we might know another reputable carrier that is more likely to offer Table C or D for the same health profile. Shopping the market is absolutely essential when facing a potential substandard rating.

Can You Improve Your Life Insurance Rating?

Yes, it’s often possible to improve your life insurance rating over time, although it usually requires demonstrable changes in your health or lifestyle. If you initially receive a rating you’re unhappy with, or if your circumstances change after purchasing a policy, here are potential avenues for improvement:

• Quit Smoking/Tobacco Use: This is the single most impactful change for smokers. Most insurers require you to be completely nicotine-free for at least 12 months to qualify for Standard non-smoker rates. To reach Preferred non-smoker rates, you typically need to be tobacco-free for 2-5 years, depending on the carrier and the specific rating class.
• Improve Health Metrics: Actively working with your doctor to lower high blood pressure, reduce cholesterol levels, manage blood sugar (especially A1C for diabetics), or lose a significant amount of weight (and maintain it) can potentially lead to a better rating upon re-application or reconsideration. Documented improvement and stability are key.
• Manage Chronic Conditions Effectively: Demonstrating consistent adherence to treatment plans and achieving stable, well-controlled status for chronic conditions can sometimes lead to improved offers, especially if your condition was less controlled at the time of initial application.
• Passage of Time: For certain conditions, like some types of cancer or recovery from major surgery, insurers have specific waiting periods. Once you pass these milestones with no recurrence or complications, you may qualify for a better rating than initially offered.
• Change Occupation or Hobbies: If a hazardous job or hobby resulted in a higher premium (often via a flat extra), discontinuing that activity might allow for the removal of the extra charge upon review.

If you believe your health has significantly improved since you first applied or purchased your policy, you can discuss “reconsideration” with your agent. This involves submitting updated medical information to the insurance company to see if they will offer a better rating and lower premium on your existing policy or on a new application. Insurance By Heroes can guide you through this process, advising on the potential benefits and the best timing based on specific carrier guidelines.

Why Carrier Choice Matters So Much for Your Rating

We’ve touched on this throughout the guide, but it bears repeating because it’s arguably the most critical factor within your control (besides your health and lifestyle): the insurance company you apply to significantly impacts the life insurance rating you receive.

Insurance companies do not all view risk the same way. Each carrier develops its own proprietary underwriting guidelines based on its claims experience, target market, and risk tolerance. This leads to “underwriting niches”:

• Carrier A might be more lenient towards well-controlled Type 2 diabetes, potentially offering Standard Plus where others offer Standard or Table ratings.
• Carrier B might have favorable guidelines for individuals with certain treated mental health conditions like anxiety or depression.
• Carrier C might offer better rates for pilots or scuba divers than its competitors.
• Carrier D might be more forgiving of a slightly higher BMI or cholesterol level for its Preferred class.
• Carrier E might have more competitive rates for seniors or those with a history of certain cancers after a specific remission period.

If you only apply to one company, or work with an agent who only represents one or a few carriers (a “captive” agent), you are rolling the dice. You might happen upon the best carrier for your situation, but it’s more likely you’ll end up with a less favorable rating and a higher premium than you could have obtained elsewhere.

This is the core advantage of working with an independent agency like Insurance By Heroes. Founded by individuals from the first responder and military communities, we bring a service-oriented mindset to insurance. We aren’t beholden to any single company’s product line or underwriting rules. Our loyalty is to you, our client. We have access to dozens of the nation’s top life insurance carriers. When you come to us, we analyze your unique health and lifestyle profile and then strategically shop the market, comparing how different insurers are likely to view your specific situation. We leverage our knowledge of carrier niches to identify those most likely to offer you the best possible life insurance rating – Preferred Plus, Preferred, Standard, or the most favorable table rating if applicable. We do the complex comparison shopping so you don’t have to.

What if I Get Rated Higher Than Expected?

Receiving a life insurance offer with a rating (and premium) that’s higher than you anticipated can be disappointing, but it’s not necessarily the end of the road. Here’s how to approach the situation:

1. Review the Offer Carefully: Understand the rating class assigned (e.g., Standard, Table B) and the corresponding premium.
2. Understand the Reason: The insurance company or your agent should be able to explain *why* you received that specific rating based on the underwriting assessment (e.g., elevated A1C, specific medical history, BMI). Ensure the information they based the decision on is accurate.
3. Consider Your Options:
   • Accept the Policy:** Especially if you have significant health issues, securing coverage now might be wise. Some protection is often far better than none. You can potentially seek reconsideration later if your health improves.
   • Request Reconsideration:** If you believe there was an error in the underwriting assessment (e.g., incorrect medical information) or if you have new, favorable information to provide (e.g., recent tests showing improvement), you can ask the insurer to review their decision.
   • Apply with Other Carriers:** This is often the most effective strategy, especially if working with an independent agency. As highlighted before, another carrier might view your profile much more favorably. Insurance By Heroes can quickly pivot and submit applications to other potentially better-suited insurers based on the initial feedback.
   • Adjust Coverage:** If the premium for the initial rating is unaffordable, consider reducing the death benefit amount or choosing a shorter policy term (e.g., 20 years instead of 30) to lower the cost while still securing meaningful protection.
   • Explore Different Policy Types:** In some cases, if traditional fully underwritten policies prove difficult, options like simplified issue (fewer health questions, slightly higher cost) or guaranteed issue (no health questions, higher cost, lower benefit amounts, often graded death benefit for the first 2-3 years) might be considered, typically as a last resort.

The key is not to get discouraged. Having an experienced, independent agent from Insurance By Heroes in your corner during this process is invaluable. We can help you understand the rating, verify its accuracy, and explore all available alternatives across the market to find a solution that works.

Insurance By Heroes: Your Partner in Navigating Life Insurance Ratings

Understanding life insurance ratings is essential, but navigating the complex web of carrier guidelines to find the best fit can be overwhelming. That’s where Insurance By Heroes comes in.

As an independent agency founded by a former first responder and military spouse, and staffed by professionals who share a public service background, we approach insurance differently. We understand the commitment to protecting others because it’s ingrained in our own experiences. Our mission is to provide clear, trustworthy guidance and find the most competitive life insurance options for you and your family.

We simplify the process by leveraging our access to dozens of top-rated insurance carriers. We don’t just give you a quote from one company; we analyze your unique situation and compare offers across the market. Whether you’re in perfect health aiming for Preferred Plus, managing a chronic condition that might result in a table rating, or have lifestyle factors that require careful carrier selection, we know how to position your application for the best possible outcome. We fight to get you the most favorable life insurance rating and the most affordable premium available.

Get Your Personalized Life Insurance Quote Today

Stop guessing about your life insurance rating and how much coverage will cost. Getting the right protection for your family starts with getting accurate, competitive quotes tailored to your specific circumstances. Don’t settle for the first offer you see or limit your options by working with a single carrier.

Let the dedicated team at Insurance By Heroes put their expertise and market access to work for you. We’ll compare policies and rates from numerous top carriers to find the coverage that best fits your needs and budget, striving for the most advantageous life insurance rating possible.

Take the first step towards peace of mind. Fill out the simple quote form on this page right now for a free, no-obligation life insurance comparison. Let Insurance By Heroes help you secure your family’s future with confidence.