Most people in the market for life insurance know that age is a major factor insurance companies use in determining the premium of a policy. What they don’t know, however, is precisely how a significant number of life insurance companies determine age. Using a simple trick known as backdating, you could lower your age in the eyes of the insurance company, thus qualifying you for reduced premiums on your policy. Here’s how to reduce your term insurance rates.

Actual age vs. nearest age

When insurance companies determine your age for a policy, some of them use your actual age, while others use your “age at your nearest” birthday. For example, using the latter method, if Mary was born on Jan 1, 1953, her actual age would be 60 for the year 2013. If she decided in September of that year that she wanted to purchase a life insurance policy, she would be considered to be 61 because the six month point had already passed.


Upon request, life insurance companies can assign you a policy date that is right before your birthday or your six-month birthday, depending on which method they use. Mary could have a policy dated June 30, 2013 despite not actually being insured until September. This will keep her monthly premiums lower.


Anyone considering backdating a policy should be aware that the premium is due from the policy date, so it is possible that one would have to pay up to an additional six months of premiums, despite not actually being insured during that time. The length of your term life insurance policy will also start on the back date.

Depending on your age, backdating a policy may not result in any significant savings. To see what kind of rates you may qualify for in today’s market, visit to browse available policies.

Richard Reich

CEO - Licensed Agent

Richard Reich CEO and Licensed agent

In my 20+ years as an independent life and disability insurance broker, I have personally assisted thousands of clients with their life and disability insurance needs.  Being independent, I represent many highly-rated insurance companies and, because I am not beholden to any one insurance company, my focus is to find the right company and policy for each individual client. I believe that when people shop for insurance (or anything else, for that matter) on the Internet, they are looking for a simple, non-intrusive, non-pressure method of doing so.  I strive to treat my prospective clients with the utmost respect and I believe an educated prospect can make the right decision without sales pressure. Please feel free to contact me at your convenience.