When applying for life insurance, most people expect to be placed into a rating class such as Preferred, Standard, or a Table rating based on overall health and lifestyle. However, in certain situations, underwriters use a more precise pricing adjustment known as a flat extra. A flat extra is an additional dollar charge per $1,000 of coverage added to your base premium when there is a specific, measurable risk that cannot be fully addressed by a traditional rating class alone. At Diversified Insurance Brokers, we specialize in navigating complex underwriting cases — including cancer histories, hazardous occupations, aviation risks, and high-risk hobbies — and we frequently help clients reduce, limit, or even eliminate flat extra charges by properly structuring and shopping the case across top-rated carriers.

Unlike a table rating, which increases your premium by a percentage relative to the Standard class, a flat extra adds a fixed dollar amount per $1,000 of coverage. That distinction matters because the financial impact scales directly with your death benefit. A $5 flat extra applied to a $250,000 policy produces a very different result than the same flat extra applied to a $1,500,000 policy. Understanding how this works — and whether the charge is temporary or permanent — can make a significant difference in long-term affordability and planning strategy.

A flat extra is commonly used when a risk is identifiable and quantifiable, but not severe enough to warrant a decline. For example, individuals applying for life insurance after cancer may receive a temporary flat extra if treatment was recent but prognosis is favorable. Similarly, applicants involved in substance abuse recovery programs may receive a time-limited surcharge while demonstrating stability. In occupational underwriting, professions such as logging, offshore drilling, or aviation roles may trigger flat extras because the risk is activity-based rather than purely medical. High-risk hobbies such as skydiving or scuba diving are often priced this way as well.

The mechanics are straightforward. Suppose you apply for $500,000 of coverage and receive a $4 per $1,000 flat extra. That results in an additional $2,000 annually layered on top of your base premium. The underlying rating class still applies — you might be Standard or Table B — and the flat extra is added separately. In some cases, carriers apply both a table rating and a flat extra simultaneously. Because underwriting philosophies differ significantly between carriers, what results in a $6 flat extra at one company might result in a $2 flat extra — or none at all — at another.

One of the most important distinctions is whether the flat extra is temporary or permanent. Many medical-related flat extras are designed to phase out after a defined number of years, often two to ten, once the period of heightened risk has passed. For example, someone with a history of melanoma may receive a five-year flat extra that automatically drops off if there is no recurrence. Occupational flat extras, by contrast, often remain in place as long as the hazardous activity continues. If participation decreases or job duties change, policies can sometimes be reconsidered.

This is why strategic underwriting presentation matters. Instead of submitting a raw application and hoping for the best, we prepare structured summaries highlighting favorable factors such as consistent follow-up care, stable lab results, reduced exposure to occupational hazards, or limited participation frequency in avocations. A well-presented file can materially influence how aggressively a carrier prices a case. Many clients are surprised to learn that underwriting outcomes are not uniform across companies. Shopping the case is often the difference between an expensive permanent surcharge and a temporary, manageable adjustment.

Flat extras also intersect with broader planning questions, including how much coverage you truly need and whether layering policies could reduce cost exposure. If you are unsure about your appropriate coverage amount, reviewing planning guidance such as how life insurance pricing works can provide context before locking in a final face amount. In some cases, splitting coverage into multiple policies with staggered durations can help control the long-term impact of a flat extra.

It is also important to understand that a flat extra is not a permanent verdict on insurability. It reflects current risk assessment at the time of underwriting. As more time passes since treatment, as lifestyle stabilizes, or as occupational exposures change, re-evaluation opportunities may arise. In some cases, replacing a policy after a flat extra period expires can result in dramatically lower premiums. In other cases, retaining the original contract is the smarter decision. The right strategy depends on age, health trajectory, and market conditions at the time of review.

For clients who receive an unexpected underwriting decision, the initial reaction is often frustration. However, a flat extra is frequently a sign that coverage is attainable — just priced with additional precision. A decline would mean no coverage at all. A table rating increases all premium proportionally. A flat extra isolates the specific risk. When properly negotiated and structured, it can represent a manageable solution that keeps long-term protection intact for your family.