Rate classes explained: preferred, standard, and what moves you between them
Two veterans the same age can be quoted very different prices for the same coverage. The reason is the rate class. It is the health category an underwriter puts you in at the end of the process, and it usually matters more to your premium than anything else except your age. This page explains the ladder, what moves you up or down it, and what to do if you land lower than you expected.
The ladder
Most insurers use a version of this ladder. The names differ from company to company, which is exactly why comparing quotes by class name alone does not work.
Class | Roughly who lands here |
|---|---|
Preferred Plus | Excellent health, ideal build, clean family history, no tobacco. The smallest group. |
Preferred | Very good health, minor issues well controlled, no tobacco. |
Standard Plus | Good health with something small keeping you off the top rungs. |
Standard | Average health. Common conditions that are well managed live here. |
Table ratings | Health issues significant enough to price above standard. |
Then there is a separate tobacco ladder running alongside it. A tobacco user can still be Preferred, but Preferred Tobacco costs far more than Preferred non-tobacco. That gap is covered in tobacco, vaping, and nicotine.
One important caution. These class names are not standardized. One company's "Preferred Elite" is another's "Preferred Plus," and the health requirements behind them are not identical. When you compare offers, compare the actual dollar premium for the same coverage amount and the same term length. Never compare class names.
What moves you between classes
Build. Height and weight together. This is the most common reason a healthy person lands a rung lower than expected, and it moves in bands rather than smoothly. A few pounds can cross a line.
Blood pressure and cholesterol. Controlled counts. An underwriter would rather see a treated number in range than an untreated one that is borderline.
Family history. Heart disease, stroke, or cancer in a parent or sibling before a certain age can keep you off the top classes no matter how healthy you are. You cannot change this one.
Tobacco and nicotine. The largest single factor after age.
Driving record. A recent DUI, or a pattern of serious violations, moves you down.
Chronic conditions. How well controlled and how long stable matter more than the diagnosis itself.
Hazardous work or hobbies. Usually handled with a flat extra rather than a class change. More on that below.
How table ratings work
A table rating is what an insurer assigns when your health prices above standard. It is the part of this page most people arrive looking for, so here it is in full.
Some companies label them with letters (A, B, C) and some with numbers (1, 2, 3). They mean the same thing.
Each table step adds roughly 25 percent to the standard premium. So Table A or 1 is about 25 percent above standard, Table D or 4 about 100 percent above, and Table J or 10 about 250 percent above. Some companies extend the scale further.
Two things worth knowing here.
First, a table rating is not a decline. It is an offer. You are insurable. The question becomes whether the price works for you and whether another company would price you differently, which they often do, because they weigh conditions differently.
Second, table ratings are frequently temporary. Many are tied to something that can change: a recent diagnosis, a number out of range, a period of instability. Once the underlying facts change and stay changed, a request to review the rating is reasonable. That process is in declined or rated: what to do next.
What a flat extra is
A flat extra is different from a table rating, and the difference matters.
A table rating is a percentage added to your premium. A flat extra is a fixed dollar amount per $1,000 of coverage per year, added on top of whatever class you get. Common ranges run from a couple of dollars to around twelve dollars per $1,000 annually, depending on the risk.
Flat extras get used for non-medical risk: aviation, diving, climbing, racing, some occupations. For veterans this comes up most often with flight crew, and with second careers in the trades, public safety, or commercial driving.
Two things to ask about a flat extra. Is it temporary or permanent? And can it be removed if you stop the activity? Both answers are often yes, and neither is volunteered.
Is your class negotiable?
Partly. Here is what is real and what is not.
Real: if the underwriter worked from incomplete or wrong information, correcting it can change the class. If a reading was off and you have evidence it is not typical for you, that gets considered. If a company weighs your condition harshly, another company may not.
Not real: there is no haggling. An underwriter is not holding a better price back. The class comes from their guidelines applied to your file.
The practical version of "negotiating" is making sure your file is accurate and complete, then having it looked at by more than one company. What you can actually influence is covered in how to lower your term life premium.
Frequently asked questions
What is the difference between Preferred and Standard?
Preferred means better-than-average health, build, and family history with no tobacco use. Standard means average health. The premium difference between them is substantial for the same coverage.
Is a table rating the same as being declined?
No. A table rating is an offer of coverage at a higher price. You are insurable. A decline means no offer was made.
Can my rate class change after the policy is issued?
Your class is locked for the term once the policy is in force. If your health improves later, you can apply again and be underwritten fresh. Never cancel the old policy until the new one is issued and paid.
Do all insurers use the same rate class names?
No, and this causes real confusion. Names and the health requirements behind them vary by company. Always compare the actual premium for identical coverage rather than the class name.
Does a VA disability rating put me in a worse class?
Not by itself. Underwriters price the medical facts of a condition and how stable it is, not the rating percentage. See how service-connected conditions affect underwriting.
Your next step
Take the quiz, Which Coverage Fits You? It points you to the coverage structure worth pricing so you can compare real premiums rather than class labels. Or get the free guide, "Leaving the Service: Your Life Insurance Decision Guide".
Sources: NAIC, Model Regulation on Unfair Discrimination in Life and Health Insurance on the Basis of Physical or Mental Impairment, Model 887 (content.naic.org/sites/default/files/model-law-887.pdf); Policygenius, Understanding Your Life Insurance Health Classification (policygenius.com); Insurance.com, Life Insurance Table Ratings (insurance.com), updated March 18, 2026. Accessed August 15, 2026.
