You get a year older six months before your actual birthday.Each year you wait to buy insurance, the premium rises a little.With a Whole Life plan, the savings would be $ 34/month (2 vs.

O’Boyle, Jr., LUTCF, MBA Did you know that it’s possible to backdate a life insurance application to lock in a younger age?

Most life insurance companies use what they call “insurance age” when calculating your initial monthly and annual premium.

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.

Many of us dream of time traveling, either to change our past or foresee our future especially when viewing life from a financial perspective.

We generally ponder on our past financial decisions like, “Had I invested in ‘X’ stock five years back, I would have earned substantial returns by now.” However, the life insurance policyholders can stay delighted as they have the power to turn the clock back and change the start date of their policy to an earlier date.

As most people know, a lot of factors go into calculating individual life insurance rates. Typically, the younger you are, the lower your life insurance premiums will be. By “backdating” (up to six months, LEGALLY), you may be able to save a lot of money each year over the time you own your policy. In terms of pricing policies, life insurance companies use different terms to calculate an insured’s age.

But as you get older, rates are higher because, obviously, the risk of death is statistically higher as we age. “Actual Age” is customarily used to describe one’s, well, 55.

Let’s look at some advantages of backdating insurance policy.

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.

But there’s a cost to using this technique: You have to pay upfront all the monthly premiums back to the age change date.