His wealth of experience empowers clients to make best possible decision regarding a life insurance policy.To explore the best life insurance option, contact Ken at 1-800-651-1953 or [email protected] practice of backdating an insurance policy occurs when the execution of an application happens after the effective date of the policy.There are instances where the backdating of an insurance policy is legal and justified.But if you agree to backdate that policy by just per year. You’re just paying for an extra month of coverage…in exchange for the opportunity to pay a lower annual rate for the entirety of your 20-year term life policy. So, yes, you did technically “waste” 1/12 of your first year’s premium for that “back” month you additionally paid (about 2).
The younger you are, and the more months you need to go back to save your age, the less likely backdating will make sense. But it definitely makes sense to have your agent crunch the numbers both ways before you move forward with purchasing any life insurance policy. I had some lucky escapes in my 20s but those tales are not for this blog. Based on life expectancy the insurer is more at risk of a claim from an older than a younger person. A 29 year old will pay €14.21, a 30 year old will pay €14.83. A 39 year old will pay €24.45, a 40 year old will pay €26.70. A 49 year old will pay €62.71, a 50 year old will pay €70.22. Taking out the policy as a 60 year old will cost €22,500 more over the life of the policy compared to a 59 year old. He must pay December’s premium but long-term this is a small price to pay to reduce his life insurance premium.3 months is usually the longest the insurers will allow you to backdate your policy.Maybe when I retire and write that book I’ve always talked about…Backdating life insurance is a legit way of reducing the cost of your cover. A 30 year old pays more for her cover than a 29 year old, a 44 year old pays more than a 43 year old etc. 12% increase A 59 year old will pay €278.53, a 60 year old will pay €353.70. So if you have had a birthday in the last 3 months you can get a cheaper price.How does actual age and nearest age effect your life insurance premiums?Our coverage on a budget tool and free life insurance quote tool will calculate the proper issue age with each carrier based on the carrier’s issue age method.