Asked by Sara  |  Submitted December 14, 2015

What is a “flat extra” that got added to the cost of my new coverage?

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  Answers  |  1

December 14, 2015

Hello Sara,

Let's add some perspective to get to the answer. Life insurance underwriting, for healthy people or those with no other issues (bad driving record, for instance), usually results in preferred plus, preferred, or standard rate classes. Some have a standard plus rate class, as well. After that, the rate class of standard gets a "table rating" between 1 and 10 or A through J, and the rating's cost increase is permanent across the life of the plan. At other times, the extra cost (on top of standard) will be temporary - it will apply for a number of years and then disappear. Certain cancer conditions may cause an underwriter to apply the extra because they believe that the risk is greater until the applicant is "out of the woods" 6 years later. In this case, the flat extra goes away after 6 years. Technically, this is called a temporary flat extra.

Kirby Thomas

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