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Should You Accept a Rated Life Insurance Policy or Explore Better Options?

  • Writer: Philippe Deray
    Philippe Deray
  • Oct 30
  • 3 min read

Updated: Nov 5

When an insurance company approves your life insurance policy with a higher premium due to a medical rating, it can feel like a dead end. Many people simply accept the rating and move on—but that’s often a missed opportunity. With the right approach, you may be able to secure better terms, lower premiums, or a policy better suited to your needs. Here’s how to navigate life insurance ratings strategically.


Don’t settle—explore better options.

What Is a Life Insurance Rating?


A life insurance rating occurs when an insurer assesses you as higher risk due to factors like medical history, age, or lifestyle. This rating—often called a table rating—results in increased premiums. While it can be discouraging, it doesn’t mean your options are limited. Many applicants have successfully improved their rating or found better policies with some strategic planning.


Why Working with the Right Agent Matters


A knowledgeable life insurance agent can be your best advocate. Agents don’t just submit applications—they understand underwriting and know how to present your case effectively. Sometimes, additional documentation or clarification can prompt underwriters to lower or even remove a rating. Since insurance decisions are based on the information available at the time of application, providing more details or updated medical records can make a real difference.


Shop Around: Not All Insurers Are the Same


Different insurance companies evaluate medical histories differently. A condition that results in a high rating with one carrier may be treated more favorably by another. That’s why exploring multiple options is crucial.


Many agents recommend submitting an informal application to several carriers at once. This approach helps identify the insurers most likely to offer favorable rates and prevents you from being locked into a suboptimal policy. It’s a smart strategy, especially for individuals with medical histories or higher risk factors.


Alternative Strategies When Ratings Are High


Even if a high rating is unavoidable, there are ways to make life insurance more affordable and practical:

  1. Reduce the Coverage Amount: Lowering the face value of the policy reduces premiums while still providing essential protection for your loved ones.

  2. Consider a Shorter-Term Policy: Switching from a 30-year level term to a 10- or 15-year term can make coverage more affordable. Keep in mind, however, that a shorter level term policies might eventually expire or renewal premiums after the initial level period may become very costly.

  3. Accept and Reassess Later: If no better options are immediately available, it may make sense to accept the rated policy and revisit your options in the future. As your health or circumstances change, better policies may become available.


Timing Is Everything


When applying for life insurance, timing can impact both options and outcomes. Submitting an informal application before a formal one can help identify carriers most likely to offer favorable terms. Additionally, acting sooner may be wise if you anticipate medical changes that could increase future premiums.


Risks to Consider


While exploring alternatives can improve your outcome, it comes with potential risks. Multiple applications or switching to shorter-term policies could result in higher costs if the new policy doesn’t pan out. Insurance is a long-term financial commitment, and decisions made without careful planning could lead to coverage gaps or unaffordable premiums down the line.


Key Takeaways


  • Receiving a rated life insurance policy does not mean you have to accept it as-is.

  • A skilled agent can advocate on your behalf, sometimes lowering or removing ratings.

  • Different insurance companies evaluate risk differently—shopping around is crucial.

  • Consider alternatives like reducing coverage, choosing shorter terms, or reassessing later.

  • Timing and strategic planning can significantly impact your policy options and costs.


Final Thoughts


Life insurance is more than just coverage—it’s a financial strategy. Accepting a high-rated policy without exploring options may be convenient, but it could mean paying more than necessary. By understanding your options, working with the right agent, and considering alternative strategies, you can make informed decisions that protect both your future and your family’s financial security.


Don’t settle for the first rating you receive. Explore your options, advocate for yourself, and choose the life insurance solution that truly works for you.



Life Insurance Disclaimer

Disclaimer: This article is for informational purposes only and is not legal, financial, or insurance advice. Life insurance needs and products vary by individual, state, and insurer. Policies may involve fees, costs, and limitations. Some policies include a cash value component that can grow over time, and certain strategies may allow for accumulation beyond basic protection. Results are not guaranteed and may vary by policy, insurer, and state. Consult a licensed insurance professional before making any life insurance decisions.





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