How Insurance Companies Price Medigap Policies: Attained Age Rated

Our society today is dealing with the ill-effects of adjustable rate mortgages and the loss of homes that they have created by falling apart.  This same aspect can be seen in Medigap insurance if you don’t pay attention to the type of premium you have when you start your supplemental plan.  The premium pricing plan of attained age rated will affect you in your pocket down the line more than it may seem.

The attractive part of an attained age rated premium is that it comes with possibly the lowest premium of all to start out with.  These premiums will be lower to begin with than any other supplemental plan, but watch out for the ill-effects down the line.  Just like the adjustable rate mortgages that mirror the process, attained age premiums will come back to get you.

Even though these premiums will start out lower than anyone else, they will eventually be higher than anyone else after years go by.  This may seem attractive to save in the beginning, but the scary idea is that you tend to have less and less income as you get older.  You don’t want your premiums to go up right when you happen to need money the most in your life.