What is the reason for backdating a policy?
The main reason for backdating a policy is to potentially reduce your premium by using a younger age to determine your risk. Your life insurance rate will generally increase the older you are when you apply, so using a younger age when the policy is underwritten might reduce your premium.
What is dating back in insurance?
Definition: Dating back is a facility given to the insured person using which he can ask the insurer to start the policy from an earlier date than the one on which he actually signs the policy. It is alternatively called back dating.
What does backdating of policy mean?
Backdating an insurance policy is when you set the day your coverage became active to a date in the past. In other types of insurance, it's impossible (or fraud) to backdate your policy, but in life insurance, backdating your policy is an option insurers offer to save you money.
What happen when an insurance policy is backdated?
What happens when an insurance policy is backdated? Backdating your life insurance policy gets you cheaper premiums based on your actual age rather than your nearest physical age or your insurance age. You'll pay additional premiums upfront to account for the policy's backdate.
What does it mean by backdating?
Backdating is the practice of marking a document, whether a check, contract, or another legally binding document, with a date that is prior to what it should be. Backdating is usually disallowed and can even be illegal or fraudulent based on the situation.
Why does insurance give you your age on your birthday?
“As you get older, the chances of you dying increases and as a result, you are more expensive to insure. In other words, the risk of you getting ill, developing diseases or dying increases with each birthday and the cost of your life cover will reflect this,” Steph explains.
What does mean dating back?
/deɪt/ B2. to have existed for a particular length of time or since a particular time: This tradition dates back to medieval times. Starting from a particular time.
Why backdate the policy?
Backdating your life insurance policy gets you cheaper premiums based on your actual age rather than your nearest physical age or your insurance age. You'll pay additional premiums upfront to account for the policy's backdate.