Why Go With an Issue-Age Rated Policy?
Issue age rated policies charge the consumer-based on the age on which the policy was issued. Older people do not get better rates, as might be expected. A person in his open enrollment period can lock in this type of rate, although an insurance company can raise the rates for all of its customers, if financial circumstances dictate that they raise their rates.
For a person starting the Medicare supplement policy as soon as he qualifies, he will pay the lowest premiums when he decides to go with the issue-age rated premiums.There are times when a person starting a Medigap policy is better off going with a level-rated policy.
When Should I Not Go With an Issue-Age Rated Medicare Suplement Policy?
If a person buying a new Medicare supplement policy is over the age of 75, he probably wants to select a policy with level premiums. Level premium policies charge all of their customers a flat rate and when the policy rate goes up, so do all of the people who hold the policy. Unless a person has no other choice, he wants to avoid buying a policy whose premiums are based on the age on which the policy was issued.
Basically, the best premiums on Medigap plans come under issue-age rated policies for younger people. Level premiums work better for people who have passed a certain age.