What is a flat extra in life insurance? A flat extra is an additional premium charge added to a life insurance policy when an applicant has a higher-than-average risk that cannot be fully addressed with a standard rating class. Situations could include health history, scuba diving, sky diving or other hazardous occupations. Unlike a table rating (which increases the overall premium by a percentage), a flat extra adds a fixed dollar amount per $1,000 of coverage. At Diversified Insurance Brokers, we help clients understand, plan for, and often reduce flat extras by shopping across 75+ top-rated carriers and presenting your case in the best possible light.

How a Flat Extra Works

When an underwriter assigns a flat extra, it’s expressed as a dollar amount per $1,000 of coverage. For example, a flat extra of $5 per $1,000 on a $500,000 policy equals an additional $2,500 in annual premiums. Flat extras may apply for a temporary period (often 2–10 years) or, in rare cases, for the entire duration of the policy. Once the flat extra period ends, the surcharge is typically removed—reducing future premiums.

Flat Extra vs. Table Rating

It’s important to distinguish between a flat extra and a table rating:

• Table Rating: Increases the entire premium by a percentage (e.g., Table B is +50%).
• Flat Extra: Adds a set dollar amount per $1,000 of coverage, regardless of your base class.

In many cases, insurers may use both—for example, assigning a Table B rating plus a $3 flat extra per $1,000 of coverage. This is why experienced guidance is essential to keep costs manageable.

Common Situations That Trigger a Flat Extra

• Medical History: Recent cancer treatment, organ transplants, diabetes complications, or heart procedures.
• High-Risk Occupations: Commercial pilots, offshore oil workers, loggers, or other hazardous jobs.
• Dangerous Hobbies: Skydiving, scuba diving, mountain climbing, or motor racing.
• Military Service: Deployment to combat zones or hazardous duty assignments.

Case Example

A 38-year-old client with a history of melanoma was initially quoted with a $10 per $1,000 flat extra on a $750,000 policy—adding $7,500 per year. After we provided updated pathology reports and demonstrated a clean follow-up history, we secured an alternative offer with only a $5 per $1,000 flat extra. This saved the client $3,750 annually while still protecting their family.

How We Reduce or Remove Flat Extras

• Carrier Shopping: Each insurer treats risk differently. One carrier’s $7 flat extra might be $3—or $0—elsewhere.
• Documentation & Narrative: We package medical records, follow-up notes, and safety logs into a clean underwriter brief.
• Timing & Re-Underwriting: If your risk profile improves (e.g., more time since treatment), we request a review to reduce or remove the extra.
• Policy Design: Adjusting coverage amount, term length, or product type can mitigate the impact of a flat extra.

Client Checklist: What to Gather Before We Shop

• Most recent specialist/primary care notes (diagnoses, stability statements, restrictions).
• Recent labs and imaging summaries (if applicable).
• Medication list with dosages and adherence notes.
• Activity logs or safety certifications for scuba, skydiving, racing, etc.
• Any correspondence showing improvement over time (e.g., stable results, decreased frequency of follow-ups).

Smart Ways to Offset a Flat Extra—Without Overpaying

• Right-size the benefit: Protect essential needs now; add coverage later if the flat extra is removed.
• Ladder terms: Split the death benefit across multiple terms so temporary needs don’t carry the same surcharge for 20–30 years.
• Blend term & permanent: Use a smaller core permanent policy for lifelong needs and term for the balance.
• Revisit annually: If your risk improves, we can re-shop and renegotiate.

Why Work with Diversified Insurance Brokers?

Since 1980, we’ve specialized in high-risk life insurance and helped thousands of clients secure coverage despite medical, occupational, or avocational challenges. With access to 75+ carriers and an advocacy-first approach, we work for you—not the insurance companies. Our goal is to secure the most cost-effective coverage possible, whether you’re facing a temporary flat extra or a complex underwriting challenge.