What is the primary basis for determining premiums in the attained-age method of insurance?

The attained-age method of insurance primarily bases premiums on the age of the insured at the time of conversion. This approach recognizes that as a person ages, the risk associated with insuring them changes, typically resulting in higher premiums since older individuals generally have a higher likelihood of claims due to health factors.

When an insured reaches a new age milestone (for example, transitioning from 49 to 50 years old), the premium adjustments made under this method reflect the increased risk that comes with that age. Thus, the focus is specifically on the age at the time of the policy's renewal or conversion, making it a key factor in determining the premium amount. This contrasts with other methods that might consider the original age or the health status of the insured as bases for premiums, which are not the primary factors in the attained-age method.