What Does Attained Age Mean?
Attained age is the current amount of time a person has been alive. It is typically measured in years. In terms of insurance, life insurance companies refer to this figure to help determine the risk of death for potential policyholders, which affects premium pricing. Moreover, it is also used to determine the point in time at which beneficiaries can receive certain benefits.
Insuranceopedia Explains Attained Age
Attained age is highly relevant in life insurance underwriting because the higher one's attained age, the more likely one is to die. This is simply because older people tend to die at higher rates than younger people. Thus, a person who pursues life insurance in their 60s will most likely represent a significantly higher risk to the insurance company than a person in their 20s. This higher risk tends to translate into higher premium rates and fewer perks.