Does backdating explain

31-Aug-2019 14:58

And that one year can make a big difference in the cost of your policy.

For the most part, life insurance premiums increase as you get older.

Backdating this policy would result in a savings of 0 over the next 20 years.

This common practice in life insurance companies is known as ‘Backdating’.Backdating provides you the option of paying lower premium by altering the policy start date and selecting the one which gives you better premium rates.For example, if a person who is going to be 40 years old after two months, applies for a life insurance policy at present; the insurer will consider his age as 41 years as per the norms.So having a life insurance age change during underwriting is most likely going to result in a higher final premium when the policy is issued.To prevent this change in premium, a policy may be backdated to save the previous age of the applicant.

This common practice in life insurance companies is known as ‘Backdating’.

Backdating provides you the option of paying lower premium by altering the policy start date and selecting the one which gives you better premium rates.

For example, if a person who is going to be 40 years old after two months, applies for a life insurance policy at present; the insurer will consider his age as 41 years as per the norms.

So having a life insurance age change during underwriting is most likely going to result in a higher final premium when the policy is issued.

To prevent this change in premium, a policy may be backdated to save the previous age of the applicant.

This back-date policy will reduce the premium liability for the insured during the policy tenure.