Jul 25
My life insurance agent said I should “back date” the policy to save money. How does this work?
Backdating a life insurance policy is a very common way to save money. Let me start by explaining how life insurance companies price insurance.
Most people say they are 36 until the day of their 37th birthday. However, if you are closer to age 37 when applying for a life insurance policy, the insurance company will price the policy based on the age you are closer to…in this case, 37.
Many consumers don’t realize that if they or their agent doesn’t specify otherwise, the life insurance company will generally issue a policy at the price/rate corresponding to whatever age they are closer to on the life insurance policy start date. That means if you are past your half birthday, the life insurance company will consider you to be the age you will be on your next birthday and you will be charged more.
What can you do? First, remember it may take weeks or even months to complete the life insurance application process.
(No Ratings Yet)
Loading ...
Print This Post
