Backdating to save age
This means that your rate changes on your half birthday prior to your actual birthday.
Disability insurance considers your birthday your actual age.
The 59 year old insured would have to consider purchasing a 25 year term product or perhaps a permanent life insurance product instead.
Most insurance companies allow a policy backdate up to 6 months to save age, if the situation presents itself for the insured’s benefit.
Ex: If your date of birth is 03/01/74 and today’s date is 09/06/14, the issue age would be 41.
Most insurance companies use the nearest age method in determining the policy issue age.
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.
As a result, your premiums will be due as of that age.
It is important to calculate if it is worth it to save age.
If you are only going to save a nominal amount of premium but need to go back and pay several months of premium, you need to calculate how long it will take to make up the savings.
In addition to potentially paying higher premiums due to older issue ages, there are other considerations that may be impacted by the issue age.
Term life product availability is based on the issue age of the insured.