How Attained Age Effects Your Life Insurance Policy?

Attained Age can refer to any policyholder’s age when the beneficiary of a life insurance policy may get benefits or remove funds from that policy.  It can also be known as the current age of the insured, specifically used when converting a life insurance policy.

Life insurance companies can use a person’s attained age (current age) to determine to price, thereby adjusting policy payments to relate to the policy holder’s age. Pricing increases often happen as that individual gets older.

Attained age differs from issue age, which refers to an insurance policy that’s premium rate is dependent on the age of the person who is purchasing it. Insurance policies that are based on issue age can be more expensive for an older insured than for a younger one. This is because the life expectancy for an older person is shorter – and thus, the probability of death is more probable in a life insurance situation, and also because it is more likely that an older person will require more medical care than someone younger. Therefore, the higher the risk – the higher the premium will be.

However, once the policy has been purchased, the premium will not typically increase any further with an issue age policy. Also, as compared to a policy that is based upon a person’s attained age, an issue age life insurance policy will typically be less costly over the long run.

This is because, with a policy that is based on a person’s attained age, the premium price is based upon the current age of the insured person, determined by adding the period that had elapsed since the issuance of the policy to his or her age when the life insurance policy was initially put in force. Therefore, with an attained age life insurance policy, the policy can become more expensive as the insured gets older over time.

Attained age example in life insurance.

If you convert a term life insurance policy to a permanent policy, you will not have to prove insurability. However, the policy cost or price will be based on your new attained age (current age) vs. the age when the policy was first issued (younger age).