Backdating life insurance
Not so when you’re talking about vintage over 50 life insurance and even more so when it’s over 60 or 70 life insurance.Life insurance age is determined one of two ways, either by age nearest (which birthday are you closest to), or actual age (your age at your last birthday).We are backdating his policy to May 28 to save age because the premium on his policy will be 00 less per year than if we date it at his current age.It is important to understand in backdating that if you choose to do it, you are agreeing to pay premiums from the backdate, not from the time the policy is issued.
For example, if a person applies for coverage six months or less after his or her birthday, the insurance company may determine that his or her age is one year less than the applicant's chronological age.
This common practice in life insurance companies is known as ‘Backdating’.
Backdating means altering the start date of the life insurance policy to a timeline earlier than when the document was originally bought.
Some insurance companies issue a policy based on the applicant's actual age.
The price is calculated based on the individual's age on the date the policy was issued. Another way of calculating age for insurance purposes is to use the applicant's nearest birthday.