Backdating to save age
Generally, the larger the premium and the older the client the more substantial savings you will typically see by backdating your application.
For example, if your half birthday was two months ago and your application was just approved today, you will automatically be charged as the older person-your nearest 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.
In his case the policy was put in force 3 months after the May 28 backdate so he paid for three months worth of life insurance that he didn’t have.
If you’re in your 30’s life insurance backdating is not an issue that you probably need to know about or even consider simply because, at your age, the cost of insurance doesn’t change much, if any, from year to year as you get older.
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.
Always make sure you do the math if you are near your birthday or half birthday for age nearest companies. For instance, Lincoln Financial is following suit with a lot of other companies and replacing their no lapse guarantee universal life with a higher priced product.
Your actual age is 39 years old but for insurance purposes you they are going to calculate your premium based on a 40 year old, because you are closer to that age than 39.He has a guaranteed level premium to age 100, 25 years.His parents both lived into their 90’s so for the sake of this example let’s say he lives to 95, 20 years.What this means is the insurance company will round up your age to the nearest birthday by 6 months.You can also look at is they go by your half-birthday day- you know as you used to say when you were a kid.