- Thread starter
- #11
How bad is Table 10?
- Thread starter Chuckler
- Start date
- 5,373
Table ratings come in 2 forms
1. table rating (some carriers use numbers & some use alpha characters). So, a table 10 or table J (same thing) would be an added surcharge of 250% of cost of insurance. If term insurance, that would mean a $1000 standard premium would now be $3500 ($1000 standard +$2500 surcharge (plus annual policy fee)because term insurance is pure insurance. the policy fee doesnt get the surcharge. this type of rating would usually require the person to re-apply in the future if their health improved to get the rating reviewed, reduced or removed. WL products dont generally appear to be as impacted from the table rating because WL isnt a pure insurance product like term insurance. $300 annually doesnt seem like enough increase if term on table 10, That would tell me the annual standard premium was only around $120 (+policy fee) & the surcharge $300 or so (+policy fee of $60 to $80) for total premium of about $500
2. Flat extra rating is usually an added surcharge per $1,000 of face amount that is on the policy for X number of years & automatically falls off. this can happen with driving records or specific cancer/health types that generally are temporary risks. So, a $500,000 face amount policy with flat extra of $10, would add another $5,000 annually to the premium for the number of years.
If this is a UL product, you may want to make sure $300 is the difference as that might not be performing the same with that little of difference being charged.
1. table rating (some carriers use numbers & some use alpha characters). So, a table 10 or table J (same thing) would be an added surcharge of 250% of cost of insurance. If term insurance, that would mean a $1000 standard premium would now be $3500 ($1000 standard +$2500 surcharge (plus annual policy fee)because term insurance is pure insurance. the policy fee doesnt get the surcharge. this type of rating would usually require the person to re-apply in the future if their health improved to get the rating reviewed, reduced or removed. WL products dont generally appear to be as impacted from the table rating because WL isnt a pure insurance product like term insurance. $300 annually doesnt seem like enough increase if term on table 10, That would tell me the annual standard premium was only around $120 (+policy fee) & the surcharge $300 or so (+policy fee of $60 to $80) for total premium of about $500
2. Flat extra rating is usually an added surcharge per $1,000 of face amount that is on the policy for X number of years & automatically falls off. this can happen with driving records or specific cancer/health types that generally are temporary risks. So, a $500,000 face amount policy with flat extra of $10, would add another $5,000 annually to the premium for the number of years.
If this is a UL product, you may want to make sure $300 is the difference as that might not be performing the same with that little of difference being charged.
- 11,600
That's what non-pay time and the weekend is for.
- 2,312
How bad is Table 10? Beats being declined. Issue the policy and tell your client that you will keep looking for better coverage for the same premium them call him once in a while and tell him you haven't found anything but you are still looking
- 5,373
Never seen a client regret accepting a table rating & trying for better, but have seen dozens of table rated clients end up with no coverage & health gets even worse. If they won't take it as issued, beg them to issue as term or combination smaller WL & term if budget is a problem
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- 26,942
Congratulations we found a carrier that will write this for you.
T10 = $300 more? On Whole Life? Does not sound right to me.
T10 = $300 more? On Whole Life? Does not sound right to me.
Are you captive?
- Thread starter
- #18
Chuckler
Super Genius
- 109
Based on what I understand captive means, yes.
You may not be able to shop for a better rate.
My first life insurance job was in a MONY agency. We weren't technically captive, but the only thing we were supposed to sell that was not a MONY product was group insurance.
Any other line (life & health) we were expected to sell their product.
The "position" was straight commission with an advance that had to be validated every month. No leads, but I was given orphans from time to time.
At that time MONY had some decent par life products. They also owned a stock company (NALAC) we could use for lower premium non-par whole life.
Term products with both carriers sucked and we were discouraged from offering term unless it was a rider.
When you are captive and in training you are expected to sell ONLY their product, even if it isn't a good deal for THEIR client.
The people you sell are not your client but THEIRS, especially if they are giving you advances, leads, etc. Commissions probably assigned to the agency. No vesting.
You have to learn the business somewhere. At one time an agency system was the only place you could go.
Starting out on your own is almost impossible for most unless you have a way to support yourself (and family) for a year or more . . . until you are a steady producer.
Good luck.
- 11,122
Must be a very tiny policy if so.
Many term policies wont go up to T10. I recently had a guy who was pre-screened at T10. Had to go with a small WL with Term Rider with that carrier.
