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What is your Insurance Age?

Calculate your age with insurance companies

When you get a life insurance quote, you may get confused with the age displayed on the illustrations. You may come across one of two ways of calculating your age;

  1. Actual age
  2. Age Nearest Birthday

Calculating your actual age is easy that is what we use on a daily basis, it’s the age you are right now. Most insurance companies however use the second method of calculation, your age to your nearest birthday.

So let’s say your birthday is January 1, 1977, today (Jan 4, 2011) you would be 35 years old. You would be 35 for both methods of calculation however in July you would jump from 35 to 36 years old with the age to your nearest birthday calculation. In July, you are now closer to your 36th birthday than to your 35th.

Procrastinating? Premiums do change based on age but remember they may change before you would normally expect. The good news is that if you missed buying life insurance before your change of age you may have the option to “conserve” your age, you just need to pay for the missed premiums between the issue date and the last change of age. This may be worth it especially with larger premiums when calculating long term savings.

About the Author

Neil Lecky

Neil Lecky

Neil Lecky is a Life Insurance Advisor, Group Employee Benefit Specialist and an Investment Funds Advisor with Alliance Financial Group. He is also a Branch Manager and Investment Funds Advisor with Investia Financial Services Inc., a mutual fund dealer.

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Alliance Financial Group
Investia Financial Services Inc.