Rated Age Calculator

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Rated Age Calculator

Standard = 100%, Table 4 = 200%

Results

Estimated Rated Age: years
Age Addition (Setback): years
function calculateRatedAge() { var actualAge = parseFloat(document.getElementById('currentAge').value); var ratingPercent = parseFloat(document.getElementById('mortalityRating').value); var resultsDiv = document.getElementById('resultsArea'); if (isNaN(actualAge) || isNaN(ratingPercent) || actualAge <= 0 || ratingPercent < 100) { alert("Please enter valid positive numbers. Mortality rating must be 100% or higher."); return; } // Using the Gompertz-Makeham mortality model approximation // Mortality roughly doubles every 8 to 9 years. // Formula: Rated Age = Actual Age + (ln(Rating/100) / ln(1.085)) // 1.085 is a standard actuarial constant for mortality doubling var ageIncrease = Math.log(ratingPercent / 100) / Math.log(1.085); var ratedAge = actualAge + ageIncrease; document.getElementById('ratedAgeResult').innerText = ratedAge.toFixed(1); document.getElementById('ageAddition').innerText = ageIncrease.toFixed(1); resultsDiv.style.display = 'block'; }

Understanding Rated Age in Life Insurance

In life insurance underwriting, your "Rated Age" (also known as a medical setback) is the age an insurance company assigns to you based on your health profile and mortality risk. If you have chronic conditions like diabetes, heart disease, or hypertension, an insurer may view your life expectancy as equivalent to someone several years older.

How Rated Age is Calculated

The calculation is based on Mortality Tables. A standard healthy individual is rated at 100%. If an individual has a health condition, underwriters assign "debits" or "Table Ratings." Each table typically represents a 25% increase in mortality risk:

  • Standard: 100% Mortality (Actual Age = Rated Age)
  • Table 2 (Table B): 150% Mortality
  • Table 4 (Table D): 200% Mortality
  • Table 8 (Table H): 300% Mortality

The math behind the Rated Age Calculator utilizes the logarithmic relationship between mortality and age. Since mortality risk generally increases exponentially with age, a 100% increase in risk (moving from 100% to 200%) usually adds between 7 to 9 years to your "effective" age for pricing purposes.

Example Calculation

Imagine a 40-year-old applicant who is assigned a Table 4 rating due to a specific health condition. Table 4 corresponds to a 200% mortality rating.

  1. Actual Age: 40
  2. Rating: 200%
  3. The Logic: At a 200% rating, the insurer assumes the applicant has twice the risk of death per year as a standard 40-year-old.
  4. The Result: Using the calculation, their Rated Age would be approximately 48.5 years. This means they will pay premiums similar to a 48 or 49-year-old in standard health.

Why Does Rated Age Matter?

Rated age is a critical metric because it directly determines your premium costs. Insurance companies use your rated age to look up the "cost per thousand" of coverage in their actuarial books. By understanding your rated age, you can better estimate why your quotes may be higher than the "preferred" rates advertised in marketing materials.

Pro Tip: Many insurers offer "Table Shaving" programs for certain conditions, which can effectively lower your rated age and save you significantly on annual premiums.

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