Term life online quote - Backdating Effective Dates for life insurance
The effective date is an important of any term life insurance policy.
In most cases, this may not matter but occasionally, it makes all the difference if the applicant passes away shortly after completing the application.
In some cases, life insurance companies will allow backdating this date.
Let's look a little closer at how this works.
Backdating has been in the news but only referring to the scandalous behavior regarding insider stock purchases.
The type of backdating we're discussing involves your life insurance effective date and no such stigma.
Essentially, some carriers may allow you to backdate your effective date.
First, what is it and what's the impact of doing this?
Backdating is where a insurance carrier allows the applicant to apply a different effective date than the actual application date.
State laws usually do not allow backdating more than 6 months prior to the application date.
There's usually a spot right on the term life insurance application to request such an action.
As with all issues regarding the technicalities of term life options, we recommend that you run your situation through us as licensed life insurance agents to make sure it's the right move.
You can also run your instant term life quote here:
The biggest issue may be the term life insurance rate that you are charged.
A big factor that drives life insurance cost is your age at the time of enrollment.
In our term life and age effect article, we go in detail as to how important age is in determining your final rate.
Backdating might allow an applicant to qualify under a younger age and consequently, a lower rate.
For example, let's say a person is 39 and 9 months old and the carrier is applying the nearest age approach to designating his/her life insurance premiums.
If we go based solely on his application date, the rate will be based on age 40.
If the carrier allows the applicant to backdate 3 months, the new rate would be based on age 39.
Most life carriers have either minimum or maximum allowable age ranges.
Backdating may allow a person who wouldn't qualify based on these ranges to now be eligible for term life.
If the maximum age to be eligible for life coverage is 80 and you are 79 and 8 months, backdating would allow you to qualify if you go back 3 months assuming the rating is based on nearest age.
Is there a downside?
So you need to weigh this lost premium versus the savings over the life of the term life policy.
Again, we would be happy to help here. At no cost to you!
Of course we're happy to help you find the best rate and option for YOUR health status:
Again, there is absolutely no cost to you for our services. Call 800-710-0455 Today!
20+ Years EXPERIENCE
"No Thank you. You've been so helpful time and time again!"
"Thank you SO SO much for all your help. I have to be honest, this insurance stuff was making me so nervous. Thank you again for your assurance"
"Anyway, I hope you got some time off this past week! Thank you again for your help and efforts on my behalf! I was very lucky to find you."
"Thank you so much! Very happy with service. If there is any way I can contact supervisors to let them know about your great service let me know"
"Yay! Thank you so much. YOu guys most definitely made it so much easier!"
"You are awesome... takes a huge worry off my back, thank you for your kind. thanks for your time and kindness. !!"
"Wow, I can't thank you guys enough for your help...I couldn't imagine trying to tackle this on my own!"
"Thank you so much for your marvelous work. Can't tell you how much I appreciated you taking care of this. You are simply the best!"