Understanding ‘Age Nearest’ Life Insurance Pricing
Virtually all life insurance companies in Canada offer 'Age Nearest Pricing'. 'Age Nearest' translates into the applicant being priced by the insurance company at the age nearest to their next birthday. For example, someone who's born on July 1st would be priced at their next birthday for any application which is issued after January 1st.
Most insurance companies do allow the applicant to backdate his or her application up to six months to 'save age' and thus lower his or her premium, but the applicant must pay for any back premium.
Sun Life was one of the last Canadian companies to offer 'Actual Age' pricing, versus 'Age Nearest' pricing, but they just changed it on their Sun Term products, and in a recent communication said it would be following suit on its other life insurance programs.
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