Kentucky Health Insurance Practice Exam

What does "attained age" refer to in insurance terms?

1. The age at policy issue

2. The current age of the insured

3. The average age of similar insureds

4. The age at which benefits begin

The correct answer is: The current age of the insured

In insurance terms, "attained age" refers to the current age of the insured. This concept is important as it directly relates to premium calculations and the coverage options available throughout a person's life. When an individual ages, the risk profile changes, often leading to an adjustment in premiums, especially in products like life insurance and health insurance. As individuals grow older, insurers assess the risk of potential health issues or mortality, which can consequently leverage the policy's costs or options based on the attained age. The other choices do not represent what "attained age" means. The age at policy issue pertains to the age of the insured when the insurance policy is first created, which does not change. The average age of similar insureds does not provide an individual's specific age and therefore fails to relate to an individual contract. Lastly, the age at which benefits begin could refer to the age at which an individual becomes eligible for certain benefits but doesn't reflect the individual's current status in terms of age. Understanding attained age is crucial for both policyholders and insurance providers in managing coverage and costs effectively.