When an insurance company receives an application for coverage, it considers several factors when deciding whether to issue a policy and how much to charge in premiums.
An individual who applies for a policy when he or she is relatively young will likely pay lower rates than someone who waits until their later years to get coverage.
It’s perfectly OK and legal to back-date the “policy date” up to six months, in order to save your age and save you money.
While we won’t do this unless it saves you money in the long run, understand that when we back-date to save age, your first policy year won’t be a full year, even though you’re paying for a full year.
In exchange, you get to pay the rate of a person one year younger for the balance of the years you’ll own the policy.
We’ll crunch the numbers both ways, and make a meaningful recommendation one way or the other. Backdating is never mandatory, just smart in certain situations.
Here is an example of how backdating can benefit a person who is looking for coverage: A person applies for coverage on September 1.
It can take many weeks to complete the process and we need to anticipate what will happen for two important reasons.We need to give you the best advice regarding the selection of a policy date so that you don’t end up paying more than you have to for your coverage.We also need to inform the insurance company regarding what our expectations are with respect to the issue date so that was can avoid unexpected price variations due to age changes which happen during the underwriting process.It is possible for them to use backdated life insurance premiums, as well, and this method of calculating age helps the policyholder save money on the cost of his or her coverage.Backdated premiums reduce the applicant's age by one year and that small change can mean significant savings on the cost of life insurance coverage.If have any questions or need information, go to Accu Quote.