Backdating

In the context of Life Insurance, "Backdating" refers to setting the policy issue date to an earlier date, up to 11 months before the underwriting approval date, to "save age." This makes the policy effective earlier, causing all policy-related dates (e.g., conversion expiry date, termination date) to occur sooner. The policyholder must pay premiums retroactively from the backdated start date. The primary purpose of backdating is to lower the issue age, which may reduce the annual premium.

Key aspects of Backdating include:

1. Earlier Effective Date: Policy is effective from an earlier date.
2. Premium Adjustment: Retroactive premiums must be paid.
3. Lower Issue Age: Can result in a lower annual premium.
4. Restricted Use: Only allowed to reduce the issue age.

Understanding backdating helps policyholders potentially reduce their premiums by adjusting the policy's start date, aligning it with a younger age.