What Is Save Age In Life Insurance?
Save age is a term used in life insurance when you backdate your policy to lock in rates for a younger age and save money on life insurance premiums. This can be done by backdating up to six months, which can result in significant cost savings over time.
|Advantage of Backdating||Disadvantage of Backdating|
|You can save a significant amount of money over the life of your policy.||You must pay for coverage starting from the date of the backdated policy, which means you pay a larger amount upfront. This also means you’re paying for a few months in which you technically didn’t have coverage, and your policy will be shortened by those months.|
When you apply for life insurance, your age may change in the eyes of the insurance company due to birthday or nearest age. If a birthday or nearest age increases your rate, many insurance companies will allow you to backdate your policy. When you backdate to save age, the insurance company will issue your policy using an earlier date versus the actual date.
Backdating is not required, but it’s a wise choice if it will save you money. However, it’s important to note that not all birthdays cause a significant rate increase. You can talk to your agent to determine whether backdating to save age would save you money.
Get life insurance as soon as you realize you need it. You never know what tomorrow will bring. Protect your family today.