Backdating insurance definition
It’s unlikely that you actually died last month and are faking being alive today so you can cash in on a death benefit. The reason has to do with your age and how it affects the price of your new policy. Your insurance company may use something called your “insurance age” or “insurance birthday” when processing your application.
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.
Dates (not to be confused with the social encounter or the fruit) in the insurance world are critical.The issue date is normally the date on which the insurance company approves and accepts your application. These two are sometimes the same, but insurance companies often add a few days to the issue date to name a policy date.This allows time for the policy to be delivered to the insured.Grace periods vary depending on insurance type and insurance company.Insurance grace periods are applicable to several different kinds of policies such as health insurance, life insurance, home insurance, condo insurance, and car insurance.