How Insurance Companies Price Medigap Policies: Issue-Age Rated

There are a lot of different ways to approach setting the premium for Medigap policies and all have their different positives and negatives.  There are some that believe it matters when you are accepted into the policy while others believe that doesn’t matter at all, but it matters to you.  One way in which to rate these policies for premiums is to use the issue-age rating, sometimes called the “entry age-rated” system.

The belief in this system is that it matters what age you are when you are admitted to the policy and it will therefore affect your premium.  This is the type of rating system that encourages people to get in early and start paying premiums in order to save money later.  This makes the situation a little more pressing for you to get started and make a decision on a medigap policy.

Policies that are issue-age rated can still be susceptible to inflation and other factors, but your age will not affect the premiums again.  The amount of money you can save over a long time period can be well worth getting into the medigap act as soon as possible.  Look for offers in your area to supplement your Medicare policy and rest easy when medical conditions or treatments come your way.