If not, you’ll be forced to backdate the policy and come up with extra cash to put the policy in force.Age is the most important contributor to both term and whole life insurance rates.” How old you are plays the biggest role in how much you’ll pay to purchase a new life insurance policy.As you can see in the example above – having to pay out 4 premiums in back coverage costs far less money than sustaining the financial blow of another birthday. BUT if you are holding a term policy and think you may only need it for a couple of years, this is not a good option at all because you won’t break even. If your circumstances are similar to my 60 year old client above and you have to pay out $853.08 in back premiums but are able to take advantage of the lower monthly payment, in three years you will have more than broken even!If you have to pay premiums for age 61 you will shell out $8700.12 in three years.That being said, if you had a birthday four to five months ago, you need to apply right now for coverage.Hopefully, you can get your policy in force before your insurance birthday to avoid paying higher premiums.If your unscheduled payrun won't let you go back to July 2014, then create a new calendar starting on the first date you need to create the old payslip, and choose what frequency it needs to be. Then process the old payrolls needed using the new calendar.It will tick over at the chosen frequency and it be quite simple and easy to enter a whole stack of missed payruns.
That means his insurance birthday would be six months later on April 1The only catch is, if the policy commences March 31st 2017, my client will have to pay premiums from that date onwards before his policy goes into effect.Do you know anyone who has been able to save age in life insurance?If so, maybe you wonder what the heck they are talking about.Which means he will have to shell out money for a few weeks worth of insurance that he won’t be technically covered for. It’s not uncommon for life insurance agents to backdate two, three, or even four months to save age.
When you are looking at saving thousands of dollars over your 20 year term, it makes sense to cough up a few extra months of premiums to offset that loss. This client is a non smoking male, who has recently obtained a Preferred rating.
…BUT for the Simply put, every year you wait to purchase life insurance, your premium increases! This male non smoking client is rated Preferred and looking for a 20 year term with $500,000 in coverage.