Backdating life insurance save age www luxdating lu
Life insurance age is determined one of two ways, either by age nearest (which birthday are you closest to), or actual age (your age at your last birthday).
By law you can backdate a life insurance up to 6 months to save age in order to get the lower cost per thousand that pertains to that age.
If you don’t do the math that might be the conclusion, but let’s run this out.
He is paying ,000 a year for a backdated permanent policy that he needs for estate tax purposes. The difference in cost is 00 a year so by the fourth year he will be saving 00 a year over a current dated policy.
Most life insurance companies use “age nearest” to determine your age.
So, that sucks that you have to pay for something you didn’t have, right?
We always say that if someone you care about is financially dependent on you, then life insurance makes sense.
However, those financial dependencies can be different at you age.
And don’t forget to ask about backdating to save even more money.
actual age, age nearest, backdating, backdating life insurance, backdating to save age, conversion, estate tax, higher rates, insurance, life insurance, Lincoln Financial, no lapse guarantee, old pricing, permanent insurance, significantly higher price, universal life, whole life Every year millions are needlessly declined for life insurance or approved and paying far more than they need to.