Rated policy

In life insurance or accident and sickness insurance you will sometimes see an "extra-risk" policy. This is a particular insurance policy with a higher-than-standard premium rate to cover the extra risk including a hazardous occupation or impaired health.

The rating on a policy can also relate to a person's driving record. If you have a pattern of multiple tickets then your policy could be rated due to the increased hazard of your likely having an injury accident. Careless driving, impaired driving or other major or criminal convictions could result in a rating or a denial of insurance. This would be reviewed by underwriting and your whole picture considered.

A rating on a policy is not necessarily a large increase in the premium payable. If it is something that will decrease over time then it certainly should be considered as a prudent choice. Down the road your health may worsen or occupation change, then the rating would be even higher at time of application.