In the context of life insurance, “issue age” can be based on either the age nearest to the policy date (age nearest) or the last birthday before the policy date (age last).
Key aspects of issue age include:
Age nearest
Calculated based on the birthday closest to the policy date.
Age last
Calculated based on the insured’s last birthday before the policy date.
Premium calculation
Determines the premium rates and policy conditions.
The method used (age nearest or age last) depends on the insurance company’s policies.
Additional context: Issue age can also define the eligible age range for applying for a specific insurance product (for example, between ages 18 and 60). It plays a key role in determining premium rates, coverage terms, and policy eligibility.