Final answer:
An insured's premium that increases because of her age points to an Attained Age policy, in which premiums rise as the individual gets older. Age affects insurance costs, with higher rates for older individuals and high-risk groups due to higher expected costs.
Step-by-step explanation:
If an insured's premium increases as a result of her age, she likely has an Attained Age policy. In the context of health insurance, age plays a significant role in determining the cost, as older individuals generally incur higher health care costs. With an Attained Age policy, premiums are recalculated and increase as the policyholder gets older. This contrasts with policies where the premium is fixed regardless of age or those that increase at predetermined intervals independent of the specific age of the insured. In the broader perspective of actuarially fair premiums, those who are older, have chronic conditions, or belong to high-risk groups often face higher premiums because their expected medical expenses are higher compared to lower risk groups. For instance, women in the age bracket of 18-44 have higher healthcare consumption, and thus, could be charged more based on usage. Similarly, young male drivers who statistically have more accidents might receive higher car insurance rates than their female counterparts.