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Life Insurance Flat Extra Fees

Life Insurance Flat Extra Fees | The Complete Informative New Guide for [2022]

Life insurance flat extra fees, what are they all about? Just about all of us who have purchased life insurance at oneflat extra fees for life insurance time or another fully understand the concept of having a premium to pay each year. Many people understand the fact that life insurance rates can be based on your health, height & weight and tobacco use, and other specific pieces of information about you.

Adjustments to your life insurance rates are usually made by the medical underwriters reviewing your life insurance application. These fluctuations to your final rates are usually done by choosing the health rate classification that would fit your profile.

There is another way your final rates can be adjusted and that is done by using flat extra fees and that is exactly what we are going to talk about. The words flat extra fees or charges are something that very few people ever heard of much less understand.


What Are Life Insurance Flat Extra Fees?

Flat extra fees are very simple to understand. They are an additional charge to a life insurance policy to compensate the carrier for an increased risk they are taking. Here would be some of the risky categories:

Life insurance flat extra charges are based on a dollar amount that is added to each $1,000.00 of life insurance coverage which is known as the policy face amount or death benefit.

The dollar amount would commonly be, for example, $1.50, $2.50, $3.00, $5.00, etc. The exact amount of the flat extra would be determined by the exact risk involved and its intensity towards a possibly fatal outcome.


Examples of Life Insurance Flat Extra Fees

Here are two examples of flat extra fees being used. The first one is for an occupation and the second one will be for a sport or hobby.

*Example number 1 –  is a 30-year-old male who has a very high-risk job as a commercial fisherman. He wants to purchase a $250,000 term life insurance policy. The base cost of the policy would normally be $800.00 per year. The life insurance company he is applying with wants to add a $3.00 flat extra fee to his policy. Since the face amount is $250,000, the flat rate would be multiplied times the face amount. 

$3.00 (flat extra) x 250 (face amount) = $750.00. Add the $750 to the base premium of $800.00 and the grand total becomes $1,550.00 per year.

*Example number 2 – is a 35-year-old male who has a hazardous sport as a skydiver. He wants to purchase a $100,000 term life insurance policy. The base cost of the policy would normally be $550.00 per year. The life insurance company he has applied with wants to add a $2.50 flat extra fee to his policy. Since the face amount is $100,000, the flat rate would be multiplied times the face amount the same as above.

$2.50 (flat extra) x 100 (face amount) = $250.00. Add the $250 to the base premium of $550.00 and the grand total becomes $800.00 per year.


We try to use life insurance companies that seldom add flat extra fees to life insurance policies. Sometimes if the occupation or sport is very risky, the addition of a flat extra charge will be inevitable.


What Are Life Insurance Health Classifications?

Health classifications are calculated for all life insurance policies and are mainly based on an applicant’s health history. As a standard procedure with life insurance companies, anytime you submit an application the underwriting department has to thoroughly review it.

At the very end of the application process, the medical underwriters will compile their detailed information and determine what your health classification will be. A health classification otherwise known as a rate classification is a classification you are placed in that would be based on your projected mortality.


Comparison Between Life Insurance Flat Extra Fees & Health Classifications

This is a great question and you are going to want to know the answer. The big difference is even though these two forms of increased premium are related to a certain extent. The flat extra fees are used for high risk occupations, hobbies, and sports. The rate class adjustments are used when calculating the risk of an applicant’s health history. The bottom line is, they are used for completely different purposes


What Are the Specific Health Classifications?

Here are the four basic health classifications you can be placed in:

  1. Preferred Best (Super Preferred)
  2. Preferred
  3. Standard Plus
  4. Standard

A description of these 4 classes would be:

Preferred Plus Rates

Many times depending on the insurance company, this class can be referred to as Super Preferred. This would be the very best class you could be placed in which would provide you with the lowest rate possible. You have to be in excellent health, height & weight and live a very clean style without any dangerous sports or occupations.

Your family history also would have to be free of early deaths from cancer or heart disease. About 10% of all applicants can qualify for preferred best rates.

Preferred Rates

If you are a healthy person and fail to qualify for the preferred best rates. You stand a very good chance of qualifying for preferred rates. This can be a very good possibility even if you have some of the very common health conditions such as high blood pressure or high cholesterol if they are properly controlled with medication. Landing in the preferred rate class would be an ideal situation to be classified in even though the rates are a little higher than the preferred best.

Standard Plus Rates

Some popular companies such as Banner Life do not offer standard plus rates but most do. If you happen to be in good health and fall outside the requirements to meet the preferred rate classes. Standard plus rates will still be very affordable. Your family health history has to be good and you can have a few medical conditions that are kept in check with prescription drugs. Being a little overweight is allowed within reason depending on the carrier you apply with.

Standard Rates

Standard rates would be common for applicants that are in decent health but maybe slightly overweight and have a few medical concerns that don’t appear to be very life-threatening. You have a less ideal height-to-weight ratio, an average life expectancy, or your medical history has a few flags. Your family health history would also have to be free of any of your parents passing away before age 60 from heart-related or Cancer as a cause of death.


What Are Standard Rate Class Table Ratings?

Applicants that have more serious medical conditions may fall into a Substandard Rate Class. A substandard rate class will be connected to additional rates classes called Table Ratings. Keep in mind that one of the most expensive categories is for tobacco users which are called a Tobacco Rate.

The tobacco rates can be approximately 250% higher than non-smoker rates. This would especially be for cigarette smokers which are at the highest risk for tobacco users. Even chewing tobacco can increase your rates. These table ratings have a direct reflection on your health history. This is not a place you want to be classified in due to the much higher cost.

The table ratings are broken down by either letter of the alphabet with A to J or by the number system which starts with numbers 1 to 10. With each table rating, the premium increases by 25%. These ratings are for people with serious health conditions of considerable height to weight issues. The designation either by letter or by number depends on the life insurance company you apply with.

  • A or 1 – Standard Rate + 25%
  • B or 2 – Standard Rate + 50%
  • C or 3 – Standard Rate + 75%
  • D or 4 – Standard Rate + 100%
  • E or 5 – Standard Rate + 125%
  • F or 6 – Standard Rate + 150%
  • G or 7 – Standard Rate + 175%
  • H or 8 – Standard Rate + 200%
  • I or 9 – Standard Rate + 225%
  • J or 10 – Standard Rate + 250%

If you go over the underwriting criteria for letter J or number 10, your application will normally be declined.


How Can I Get the Best Health Classification?

Receiving a preferable life insurance health classification is the golden nugget to getting the lowest rates and premiums. Here are my main tips to increase your probability of receiving a favorable health class rating. 

  • Do Not Procrastinate – Apply for life insurance as early as possible in your life. The more you wait, the higher your premiums will be. Your life insurance rates increase by approximately 5% every year and over 10% per year as you get older in your 60s. On top of that, the older you get the more health conditions you will develop and the premium could drastically rise to the point where they will be unaffordable or you could be declined.

  • Improve Your Overall Health – Watch closely what you eat and getting more exercise can have a major impact on your health. The more healthy you become, the better the health class you can qualify for. Even if your parent’s health history is below average, your health is what the insurers zero in on the most.

  • Smoking & Drinking – Using tobacco products will land you in the smoker’s rate classification and your rates will go up in smoke.  If you get carried aways and consume a lot of alcohol you are putting yourself and your insurance rates in harm’s way. Life insurance for alcoholics or heavy drinkers could be very expensive if not even possible.

  • Watch Your Weight – Becoming overweight or obese is one of the best ways to ruin your chances of getting affordable life insurance rates. Life insurance companies know that being overweight is directly linked to many life-threatening medical conditions, the biggest being heart disease. Remember that heart disease is the number one killer in the United States.


How Can I Buy Life Insurance Without Getting a Flat Extra Fee?

We never want anyone to apply and receive a flat extra fee. All that is going to do is increase your premium. We usually know what companies are least likely to use the fees and submit applications to them to help our clients save money.

This strategy will work many times but depending on your occupation or sport, it may be impossible. The more hazards you are exposed to, the more likely a flat extra fee could be applied. In many cases, the flat extra charges are minimal and don’t have a big effect on the premium.


Should You Work With an Independent Agent?

In a short answer, yes if you want to receive the lowest rates and be able to compare the most options. An independent agent is also known as a broker. The independent agents like ourselves do not work for life insurance companies like captive agents do with companies like State Farm.

Brokers work with all the top-rated life insurance companies in America and can shop the entire market for you. Life insurance health classifications and flat extra fees can be put in a very positive perspective when applying with the proper life insurance companies. We always try to zero in on the best company for our client’s interest.

Choosing the company that will offer the best health classification and eliminating the use of life insurance flat extra fees is the formula for getting the best rates possible. This can all be obtained by connecting with an independent agent. Their assistance is always free and with no obligation whatsoever.


Why Pre-Screen Your Application Before You Apply?

If you want to eliminate any surprises during the application process, this is the way to do it. One of the smartest things you can do is pre-screen your application before you apply for life insurance. Not only can you pre-screen medical conditions, but you can also pre-screen your high-risk occupation, hobby, or sport if you have one.

This will eliminate surprises later on during the application process. Know what is going to happen before you apply and not after. We run medical pre-screens on just about every client to make sure we are going to have a nice smooth application process and receive low rates.


Can Flat Extra Fees Be Removed Later?

Yes, flat extra fees can be removed at a later date with some of the companies. This could only happen if the high-risk exposure the flat extra was first initiated for has been eliminated. For example, if you had a hazardous job and you retired or changed jobs to occupation without the dangers.

Some companies would allow you to be considered for removal of the charge but they would not just take your word over the telephone. You would have to complete a paper application and then re-submit it. The bottom line is, it can be done.


In Conclusion

Needless to say that life insurance flat extra fees, health classifications, and other insurance-related terminology can be confusing. Thatflat extra fees for life insurance is why the insurance agent was invented to provide answers to all your questions and eliminate headaches. Feel free to contact us 7 days a week for all the help you need. If you would like to apply for life insurance, we use over 40 of the most trusted life insurance companies.

You can also quickly and easily apply over the phone in about 15 minutes. I hope this blog post has answered many of your questions.

If you ever decide to apply and want to eliminate taking a physical exam. You can apply for no medical exam life insurance and be approved in 24-48 hours.

All the best,

Jack Venturi


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Jack Venturi Independent Life Insurance Agent

Jack Venturi

Independent agent and founder of

Jack Venturi has over 30 years of experience selling all forms of individual and commercial insurance including Property & Casualty, Health, Disability and Life insurance. Jack has helped thousands of people all across the United States purchase the best life insurance products at the lowest possible premiums over the phone (800)-897-5699 and online.