When it comes to life insurance, insurers will let you backdate a new policy a few days or even months, if by doing so you can get a lower premium.
The date you are paid tax credits from is usually the date HMRC receive your claim form – this is your date of claim.
However, you can be paid for an earlier period in certain circumstances. The Government is gradually introducing universal credit, a new benefit which will eventually replace tax credits, and some other social security benefits.
This resulted in keeping the life insurance age at policy issue at 30, and the cost of the policy the same as the original quote of $300.
Backdating this policy would result in a savings of $500 over the next 20 years.
But because of how insurers determine age, there can be up to a window when the insurer considers you 35 even though you’re still 34. When you’re deciding whether it’s worth it to backdate or not, be sure to factor the extra premiums into your calculations.
It might be a year or two before you see any savings, so if you’re not planning on keeping the policy for longer than that it may not be worth the trouble.
With life insurance, as your age goes up so does your premium. (Not every insurer does this.) The insurer will look at the midway point between your birthdays and round your age up or down depending on which birthday is closer.
For example, if you turn 35 around the time you apply for a new policy, you could end up being charged a slightly higher premium for being 35 instead of 34. With a little planning you can surely avoid mixing your birthday up with your life insurance application. For example, if you turned 34 on January 1st and you apply for insurance on July 4th, you might be considered 35 on your insurance application even though your next birthday isn’t for almost 6 months. In the example above, you might be able to get a cheaper premium if you backdate the start date of the policy to June 4th, because then your “insurance age” will be 34. You’ll have to pay the premium for those weeks or months that are now part of your newly backdated policy.
However, instead of posting for a future date, your post will be nestled in your Timeline at the past date of your choosing.
My concerns for this feature are for the ways it may be used.
Life insurance policies are issued at the your life insurance age.