Issue Age Policy

DEFINITION of 'Issue Age Policy'

An insurance policy whose rate is dependent on the age of the individual who purchases it. An issue age policy is more expensive for an older individual than a younger one, but once purchased does not increase in price any further. Premium payments typically increase as the cost of healthcare services rises as a result of inflation.

BREAKING DOWN 'Issue Age Policy'

Insurance companies tie the cost of an issue age policy to an individual's age because older policy holders are more likely to require treatment. Compared to attained age policies, issue age policies are typically less expensive in the long term. Attained age policies become more expensive as the policy holder grows older.

RELATED TERMS
  1. Attained Age

    1) The age at which the beneficiary of an insurance policy, retirement ...
  2. Dependency Ratio

    A measure showing the number of dependents (aged 0-14 and over ...
  3. Yearly Renewable Term - YRT

    A one-year term life insurance policy. This type of policy gives ...
  4. Expense Constant

    A fixed amount added to a policy to cover the cost of administering ...
  5. Term Life Insurance

    A policy with a set duration limit on the coverage period. Once ...
  6. Normal Retirement Age - NRA

    The age at which people can receive full benefits upon leaving ...
Related Articles
  1. Retirement

    Why to Buy Term Life Insurance with a Conversion Option

    Why you should always purchase a term life insurance policy that allows for an unrestricted conversion option.
  2. Personal Finance

    4 Reasons Why Waiting To Buy Life Insurance Is a Bad Idea

    Understand the benefits of applying for and securing life insurance coverage while you are young and healthy, and learn the cost of waiting to get coverage.
  3. Personal Finance

    Long-Term Care Insurance: Who Needs It?

    No one is immune to the possibility of one day needing long-term care - and the costs can deplete a life savings.
  4. Retirement

    Understanding Life Insurance Premiums

    When buying permanent life insurance, what amount of premium should you pay for the coverage?
  5. Retirement

    5 Mistakes That Can Ruin Your Life (Insurance)

    Don't let these simple errors leave you unprotected. Read on to learn more.
  6. Financial Advisor

    Advising FAs: Explaining Life Insurance to a Client

    Life insurance was initially designed to protect the income of families, particularly young families in the wealth accumulation phase, in the event of the head of household's death.
  7. Personal Finance

    How to Choose Permanent Life Insurance Policies

    When does it makes sense to buy a guaranteed rather than a non-guaranteed life insurance policy?
  8. Managing Wealth

    How Survivorship Life Insurance Works

    Should you buy a survivorship life insurance policy?
  9. Personal Finance

    Does Buying a Guaranteed Life Insurance Policy Make Sense?

    When does it make sense to buy a life insurance policy that is guaranteed?
  10. Markets

    How to Find a Job After Age 50

    Finding a job at any age can be tough but older candidates face specific challenges. Thankfully there are ways to stack the odds in your favor.
RELATED FAQS
  1. Can you withdraw from a 401k without penalty, at age 55, if you have a defined pension ...

  2. Do I have to pay taxes at age 66?

    I recently turned 66. I'm retired and I make $1,100/month from retirement. I'm also a taxi dri... Read Answer >>
  3. How do I calculate my Social Security break-even age?

    Learn why age plays an important role for when to start receiving Social Security income and how calculating break-even age ... Read Answer >>
  4. When am I eligible to receive Social Security benefits?

    Understand when you are eligible to begin collecting Social Security retirement benefits and how retiring at different ages ... Read Answer >>
  5. Why is my insurance premium so high/low?

    Insurance premiums can be affected by many factors including: type and amount of risk size of deductible amount of coverage ... Read Answer >>
  6. How old should you be to get life insurance?

    There's really no pre-determined age when it suddenly becomes necessary to take out a life insurance policy. However, if ... Read Answer >>
Trading Center