Backdating explain the
Backdating explain the - vista feed gadget not updating
For example, if a person who is going to be 40 years old after two months, applies for a life insurance policy at present; the insurer will consider his age as 41 years as per the norms.In such a situation, if he backdates his policy to 6 months earlier, then he would be considered getting that policy at an age of 40.
Backdating comes very useful if you are one of those taxpayers who are looking to buy a life insurance policy to exhaust the section 80C limit on this year and start paying the premium on a monthly/quarterly basis from the next year.There are specific professions whereby the flow of income is not uniform throughout the year.Rather, the income goes up and down at the peak season and off season, respectively.Take for example, if you purchase a money-back plan today then your expected 20% of sum assured will be offered to you after 5 years i.e. In contrast, if you backdate the policy to 2013, then your first return will reach you in 2018.Backdating directly affects the premium rate; hence it should be opted by people who are planning to purchase a policy at an older age.Let’s look at some advantages of backdating insurance policy.
Backdating provides you the option of paying lower premium by altering the policy start date and selecting the one which gives you better premium rates.
And even if you forget, surely your family members can remind you of the same.
Backdating also takes care that the maturity date coincides with this significant date.
But the difference becomes substantial for individuals purchasing policy at an age of 40 and above.
If you have opted for backdating, you must ensure to move into the previous age bracket, even if by one day.
Suppose you are falling in a senior premium slab just by a month’s time, then backdate the policy only by a month and avail the last premium rates.