Calculating Your Life Insurance Age

Written by Strahan Financial Services

Calculating Your Life Insurance Age

You might be older than you think! Sometimes there is confusion when applying for life insurance regarding how life insurance companies determine your age.  Calculating your life insurance age is different than the way most people look at the natural age. Let’s say your age 55; you know you are 55, and all your relatives and friends know you are 55. However, the insurance company has your age as 56, which will result in a higher annual premium. When determining your premium for insurance life, companies depend on several factors in calculating your life insurance age.

Life insurance companies look at several factors in determining insurance premiums.  They naturally consider your current health, your medical background, and your family history. They also check your driving record. If you have four speeding tickets and a DUI, your premium will be much more than someone with a clean driving record. That’s only fair and financially justified by the life insurance underwriters. A poor driving record is a higher risk, thus a higher premium.

However, age is often overlooked and can also be a relevant factor in calculating your life insurance premium, especially for older clients applying for insurance coverage. But how old are you, according to the company you are applying for insurance?  With most of us, our age is what the calendar says it is.  If I am 35, I am 35, not 36. However, when calculating your life insurance age, most life insurance companies see it differently.

Two Methods Companies Use in Calculating Your Life Insurance Age

1. Actual Age

The first method is called the Actual Age, or the age you were on your last birthday.  This method calculates your life insurance age based on your last birthday. It’s your real age on any given day. So, when asked how old you are, most of us do not have to give it much thought.

  2. Nearest Age

This method used in calculating your life insurance age calculates your life insurance age based on your nearest birthday. The nearest birthday might be your last birthday or your next birthday. If you are one day over the middle of a year, which is six months or six months, and one day, you are closer to your next age.  If you are five months and 31 days old, insurance companies will determine that you are closer to your last birthday than you are to your next birthday.

Most life insurance companies use the Age Nearest Birthday method for age determination. Interestingly, the companies that don’t use age nearest usually have higher premiums. But you don’t have to worry about knowing which method to use or doing any math. Quoting systems do it all for you. Our quoting system provides an accurate quote based on your date of birth, considering each company’s underwriting method. Therefore, we ask for your date of birth and not your age on the Quote Questionnaire.

You can even run a needs analysis, health analyzer, receive quotes, select a product, and a carrier and complete a pre-application on your own!

Handling “Surprise” Birthdays

Your life insurance age could change while your application is in underwriting if you move to within six months of your next birthday. Happy birthday! If this happens, we can usually ask the life insurance company to backdate your policy to keep your life insurance age to your actual age. You will be required to pay the premiums to save your birthday.


So, If it takes two additional months to underwrite your life insurance policy, then you would owe premiums for those two months.  The policy issue date will be the date you applied for the insurance.  That is why with may life insurance applications, you can “save your age” when submitting the initial request for life insurance. In the long run, it could save you considerably if you are applying for a 20- or 30- year policy.

If you are in a hurry to get a life insurance policy issued, you can always choose a company that has “accelerated underwriting or go the no exam route. These processes speed up the process considerably.

Why Use Strahan Financial Services?

It is essential to use an experienced independent agent. As independent agents, we have extensive knowledge of the insurance industry and how to qualify you for the best possible life insurance rates with no medical exam.  Many of the websites offering life insurance are call centers with cubicles of agents using a script to sell you life insurance. Some of the websites sell your information to 10 or more agents, which results in you receiving many calls over many days.

Our staff has extensive knowledge of the insurance industry. We are independent and know the companies, the products they offer. We use the latest technology to improve your experience and get your policy issued as fast as possible at the least expensive rate.

Some of the top-rated companies we work with are Pacific, Mutual of Omaha, Transamerica, SBLI, Protective Life, American General, and Prudential, to name a few.  We are not obligated to use any company, finding the company that is the right fit for you, at the lowest possible price, with the best rating and benefits is our goal.

about Strahan Financial Services

About Strahan Financial Services
About Strahan Financial Services

We work with individuals across the nation to secure the best life insurance rates.

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