While we won’t do this unless it saves you money in the long run, understand that when we back-date to save age, your first policy year won’t be a full year, even though you’re paying for a full year.In exchange, you get to pay the rate of a person one year younger for the balance of the years you’ll own the policy.In his case the policy was put in force 3 months after the May 28 backdate so he paid for three months worth of life insurance that he didn’t have.
Even if the difference is only $100 a year on a 30 year term insurance policy and you you have to pay $200 to backdate, over the life of the policy you save $3000.
Always make sure you do the math if you are near your birthday or half birthday for age nearest companies. For instance, Lincoln Financial is following suit with a lot of other companies and replacing their no lapse guarantee universal life with a higher priced product.
He is paying $40,000 a year for a backdated permanent policy that he needs for estate tax purposes. The difference in cost is $3400 a year so by the fourth year he will be saving $3400 a year over a current dated policy.
He has a guaranteed level premium to age 100, 25 years.
they are 36 until the day of their 37th birthday, at which time they are 37.