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.