Rated Policy

A rated policy — also called a substandard policy — is one issued to an applicant whose health history or lifestyle presents a higher-than-average mortality risk. Rather than declining coverage outright, the insurer may offer a policy at a higher premium ("table rating") or with specific exclusions attached. Table ratings are typically expressed as a percentage above standard rates (e.g., Table B or Table 2 = 50% above standard; Table D or Table 4 = 100% above standard). As an applicant's health stabilizes or improves over time, they may apply for reconsideration of their rating. Some carriers specialize in substandard risks and may offer more competitive rates for specific conditions.