Backdating life insurance save age

But if you can lock in a slightly lower rate for 20 years, that would save you money over time.Once your policy is issued, your rate is locked in for your whole life or the duration of your term.

His or her birthday is September 15 and the insurance policy is approved and issued on September 30.The person is paying for coverage that didn't officially start until the policy was issued, which is September 30.In effect, he or she is paying for a couple of weeks worth of premiums and getting no benefit whatsoever.If the policy is backdated to September 14 (the day before the applicant's birthday), he or she can take advantage of lower rates.The disadvantage of life insurance premiums that are backdated is that the individual must pay for coverage as of September 14 in this example.

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