Rated age is an underwriting concept in which a life or annuity applicant is treated as being older than their actual age for pricing purposes due to health or lifestyle impairments. Instead of expressing extra mortality as a table rating or flat extra, some products or markets convert the additional risk into an equivalent older age, so premiums or payout factors reflect a shorter life expectancy. Rated age is particularly common in certain pension, immediate annuity, and impaired-risk markets where benefits are based on age-related factors. The higher the rated age relative to actual age, the more severe the impairment being priced into the contract.

In practice, advisors encounter rated age on quotes for single premium immediate annuities or defined benefit pension plans when participants have significant medical issues. A client with multiple impairments might receive income based on a rated age of 75 even if their chronological age is 70, resulting in higher payouts. In life insurance, some markets may explain offers in terms of an effective rated age to make pricing more intuitive. Advisors help clients understand that rated age is not a clinical judgment but a pricing tool that reflects actuarial expectations. When presenting options, they may compare standard and rated quotes to illustrate how health conditions can affect both premiums and guaranteed income.