What is a Rated Age and how does it affect the annuity?
Rated Age is the term used to describe an adjusted age given by medical underwriters based on an analysis of health impairments – related to the injury or pre-existing. This rated age is used to calculate the annuity costs or benefits for that individual. Many injured claimants also have significant health problems or habits, such as smoking, alcohol abuse, heart disease, high blood pressure and/or diabetes. This rating process directly affects the cost of the annuity (favorably) because the life insurance company is of the opinion that they will make payments over a shorter life span, therefore requiring less of a premium deposit to assume the lifetime payment obligation. Conversely, assuming a fixed premium deposit allocated for the annuity, increased annuity benefits will be paid to the individual over their lifetime.
Related Questions
- How You Hold a Table Tennis Paddle can Affect the Way You Play the Game The age old question remains, how to hold a table tennis paddle?
- How Did the Elimination of the US Earnings Test Above the Normal Retirement Age Affect Labour Supply Expectations?
- What is a Rated Age and how does it affect the annuity?
