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FREE HEALTH INSURANCE QUOTE ONLINE
Date :
By Rasid
What is Your Insurance Age?
Life Insurance
Life insurance companies use several factors when determining the
premium for a policy. These include, but are not limited to, health
status, health history, tobacco/nicotine use, gender and age. The last
one seems fairly simple to determine. After all, your age is what the
calendar says it is. Unfortunately, many life insurance companies see it
a different way.
Life insurance companies generally use one of two methods for
determining an applicant's insurance age for the purpose of issuing a
life insurance policy.
1. Actual Age
The first method of age calculation is called Actual Age (sometimes
referred to as Age Last Birthday). This method calculates your insurance
age based on your last birthday. Let's look at a couple of examples:
* Example 1
Your Date of Birth May 1, 1950
Today's Date April 30, 2006
Your Insurance Age Today 55
* Example 2
Your Date of Birth May 1, 1950
Today's Date May 2, 2006
Your Insurance Age Today 56
The Actual Age calculation method is very straightforward as it is
simply a measure of an applicant's calendar age on any given date.
2. Age Nearest Birthday
The second method of age calculation is called Age Nearest Birthday.
This method calculates your insurance age based on your nearest
birthday, which could be either your last birthday or your next. Here's
how it works:
* Example 1
Your Date of Birth May 1, 1950
Today's Date May 2, 2006
Your Insurance Age Today 56
* Example 2
Your Date of Birth May 1, 1950
Today's Date November 2, 2006
Your Insurance Age Today 57
Example 2 shows us the significance of the Age Nearest Birthday
calculation method. Your insurance age in Example 2 is 57 because on
November 2nd, you are actually closer to your next birthday (your 57th)
than you are to your last birthday (your 56th). So even though you have
not yet turned 57 by the calendar, this method of calculation determines
your insurance age to be 57. This will happen every year on the day you
move to within six months of your next birthday.
Most life insurance companies use the Age Nearest Birthday method for
age determination. QuickQuote's quoting system is designed to provide an
accurate quote based on your date of birth, taking into account each
individual company's quoting method.
However, by the time your policy is issued, your insurance age may be
different than it was when you received your original quote. This will
depend on whether you had a birthday or moved to within six months of
your next birthday during the underwriting process. In either case, it
may be possible to have your policy backdated to keep your Insurance Age
down.
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