How Are Aged Based Premiums Calculated?
Base rates that are determined by age are based on that of a 21-year-old. Because older people are typically more likely to need to visit a doctor or hospital, their rates are higher than that of a 21. However, regardless of age, the price of the premium cannot exceed three times the base rate. Those that are younger than 21 typically receive a premium that is lower premium. These premiums can be affected by other factors such as if tobacco products are used by the policyholder.