Backdating life insurance save age

That’s because according to the company, her “insurance age” went up six months before her actual chronological birthday.The premium for a 34 year old woman in this case is 0/year or /month – an increase of /year or /month.My estimate is that the premium will be 0/year or /month.But when we run the insurance illustration on June 1, 2011 (three months before her actual 34th birthday), the software says that she is 34 years old.The person is paying for coverage that didn't officially start until the policy was issued, which is September 30.

Gender also plays a role in how much someone will be charged for life insurance coverage and the company will want to know if the person is -or ever was- a smoker for ratings purposes.We can backdate the application paperwork (by making a note in the appropriate section) and lock in her insurance age of 33 for the full duration of the term.That will save her 00 over the life of the policy.A back premium of 6 ( x 3) would be required at the time of application or at delivery. It will take about 37 months (at /month) to break even using this technique.This technique works best with longer term life insurance plans, and especially Whole Life Insurance policies.