Backdating life insurance save age
In effect, he or she is paying for a couple of weeks worth of premiums and getting no benefit whatsoever.
When shopping around for life insurance coverage, a consumer should ask her agent whether a company offers backdated life insurance premiums to its policyholders.
The nearest age calculation is what most insurance companies use when setting rates for coverage.
It is possible for them to use backdated life insurance premiums, as well, and this method of calculating age helps the policyholder save money on the cost of his or her coverage.
There are certain situations, however, when backdating is acceptable; however, the parties involved must agree to it.Companies such as Comverse, Verisign, F5 Networks, Intuit and Mc Afee - as well as Home Depot, Michael's Stores and United Health Group, to name a few - all engaged in this fraudulent activity to varying degrees and were forced to pay fines and penalties and conduct time-consuming and expensive restatements of their books.Life insurance policies are priced based on your health, family history, lifestyle, occupation and the most key factor, your age.The price is calculated based on the individual's age on the date the policy was issued. Another way of calculating age for insurance purposes is to use the applicant's nearest birthday.Depending on when the application for coverage was made, the insurance company will assign an age to the applicant.