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What Does a Rated Life Insurance Policy Mean?

Can you get a better rate on your life insurance?

By Byron Udell | April 24, 2017

What’s a Rated Life Insurance Policy? If you don’t know what that term means, then you might find this blog informative.

[Editor’s Note: This blog was originally published on December 20, 2006. The content has been updated and expanded.]

As we all know, insurance companies are in the “risk assessment” business. But not all “risks” are the same. Especially when it comes to life insurance. So insurance carriers quantify risk levels with a simple rating system.

Life insurance rates classes

Most life insurance carriers have four rate classes. Typically, the four rate categories are:

  • Preferred Best
  • Preferred
  • Select
  • Standard

If you’re buying a policy from an insurance agent, the goal is to figure out which rate class you’ll be approved at, and which insurance company offers you the best rate for your rate class. “Preferred Best” is the best rate you can get. If you qualify for this rate, you should be paying the lowest price for your coverage.

Rated life insurance policies

A “rated” life insurance policy is a policy that is also often referred to as a “substandard” policy. A person with less than average health or who has a high-risk occupation may receive a rated or substandard policy. This type of policy will have higher premiums than a “standard” policy. Rated policies are usually identified with a letter or number (ex. Standard Table B or Standard Table 4).

What to do about a rated life insurance policy approval

If you applied for the policy through a brokerage like AccuQuote, ask your agent if there’s any way to get a better rate class if you went with a different carrier. An experienced agent should be able to determine it this request is doable, rather quickly. And if your agent does believe that you can get a better rate with another insurance company, you might not even have to re-take your medical exam. You might have to fill out additional paperwork, but that’s a small trade-off if you can get a better rate for your new policy.

For over 30 years, AccuQuote has been helping customers save a ton of money on their life insurance. We offer many different types of coverage options, including Term Life, Permanent Life, Disability Insurance and so much more. AccuQuote has been mentioned in such media outlets as Kiplinger’s, The Wall Street Journal, Crain’s, The New York Times, Consumer Reports, Forbes and more.

There are no insurance companies “pulling our strings.” Our fierce independence means you’ll get the best values when we shop the market on your behalf. We only represent the top-rated, brand-name life insurance companies that you know and trust.

If you want a free life insurance quote, fill out our online form. For more information on what a rated life insurance policy means to you, call AccuQuote at 800-442-9899.

We only work with highly rated insurance companies – brand names you trust. You may be able to save money without sacrificing quality and strength.