Speak to a Live Person.    Call 800-442-9899

What Does a Rated Life Insurance Policy Mean?

Pensive stylish businessman is making important task

By Byron Udell | April 24, 2017

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 primary 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

What to do about a rated life insurance policy approval

If you applied for the policy through a broker, you’ll want to 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 if 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.

Now that you’ve got the facts, give us a call at 800-442-9899! We’re old school so you’ll have to speak with a real person, but we’re guessing that’s the type of service you’d expect.

Keep Reading and Learn How to Save Money for Life

Why are the wealthy buying so much life insurance?

Where to begin when buying life insurance

Life insurance checklist for a small business

Blog Policies
Content, articles, information and opinions expressed on the AccuQuote Blog, whether provided by the authors or public visitors to the website, are provided to help consumers make informed decisions regarding their insurance needs and options. Opinions expressed in the articles are strictly those of the authors and may not represent the view of AccuQuote, its officers, employees, clients or the companies whose products are offered by AccuQuote.
The information, content, and services provided on this site are not intended to be, and should not be construed as legal, tax, financial planning, or other professional advice.  Visitors to the site should look to and rely on their own professional advisors for such advice. 
AccuQuote will not be liable, under any circumstances and in any way, for any errors or omissions, loss or damage of any kind incurred as a result of use of any content posted on the AccuQuote Blog.  By visiting the AccuQuote Blog, you acknowledge and agree that you use the content at your own risk and bear all risks associated with your use of any content, including any reliance on the accuracy, completeness, or usefulness of such content.
See also our website terms and conditions Terms & Conditions

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