back-dating term insurance policy

[keep_rolling]

hi all, i applied for a term insurance policy way back in nov 2015, and the insurance guy backdated it to oct 2015 to my birthday date so that the premium can be reduced slightly. So suppose instead of showing that i applied at age 41 (suppose) it will count that i applied at age 40 and so will have less premium amount (few dollars less only).

but the insurance co. processed my application in feb only and is now asking me to pay the premium starting from oct 2015. i obviously dont want to pay for oct-jan 3 months waste of premium right. what to do.

can i just ask them to cancel the back-dating and date if from feb or march?

any advice?

edit: i am not 40 or 41, just used it as example.

 

[FP_IFA]

hi all, i applied for a term insurance policy way back in nov 2015, and the insurance guy backdated it to oct 2015 to my birthday date so that the premium can be reduced slightly. So suppose instead of showing that i applied at age 41 it will count that i applied at age 40 and so will have less premium amount (few dollars less only).

but the insurance co. processed my application in feb only and is now asking me to pay the premium starting from oct 2015. i obviously dont want to pay for oct-jan 3 months waste of premium right. what to do.

can i just ask them to cancel the back-dating and date if from feb or march?

any advice?

What is the different in premium between 40 and 41 for you?

 

[Mecisteus]

when did you receive your policy documents? if within 14 days, then you can invoke this if you are not happy.

14-day free look (Cooling-off period) for life, accident and health insurance products

http://www.moneysense.gov.sg/Understanding-Financial-Products/Insurance/Things-to-Watch-Out-for.aspx

 

[keep_rolling]

What is the different in premium between 40 and 41 for you?

just added an edit on my original post that i am not 40 or 41, just used it as an example.

as such also, i cant remember the difference exactly but it was very negligible i think, like 10-20 dollars less a year.

anyway dating the policy from feb2016 will save me a quarter's premium, and i think overall too it may be cheaper.

 

[keep_rolling]

when did you receive your policy documents? if within 14 days, then you can invoke this if you are not happy.

14-day free look (Cooling-off period) for life, accident and health insurance products

http://www.moneysense.gov.sg/Understanding-Financial-Products/Insurance/Things-to-Watch-Out-for.aspx

i haven't even signed the acceptance letter, so can i ask them to modify the acceptance letter and date the policy from feb and not from oct. will they agree?

 

[Mecisteus]

i haven't even signed the acceptance letter, so can i ask them to modify the acceptance letter and date the policy from feb and not from oct. will they agree?

since you havent sign, then the insurer should be able to amend the date.

in other words, you are not insured yet. it doesnt make sense to pay the past few months of non-insured period.

 

[keep_rolling]

since you havent sign, then the insurer should be able to amend the date.

in other words, you are not insured yet. it doesnt make sense to pay the past few months of non-insured period.

ya u r right, will use these same words and ask them to not backdate it so much. thanks

 

[Tornesoul]

u should calculate if the premiums u pay if u dun backdate are still worth it.

i.e. total backdate + premiums till end vs no backdate + premiums till end

 

[iCuteCube]

Normally most of the time backdated = pay extra few months but normally worth it.

For example, you are paying for 4 months free. Per month is say $300.
Total extra required to paid is $300 x 4 = $1200.

Difference between 40 and 41, the difference yearly till 65 for example, the difference would be about $3-4k for example, that is worth it.

Some term insurance "locked-in" the premium, meaning fixed premium, that's why by calculation detailed, backdated make sense, because you are paying $1200 extra, but overall you are saving $3-4k because you are using "1 year" younger age to purchase the insurance.

Do the calculation before deciding, from what I see normally it is worthwhile.

 

[Mecisteus]

ya u r right, will use these same words and ask them to not backdate it so much. thanks

read the posts above. now then i understand the beneficial of backdating.

do your comparison again to see whether it is worth to backdate.

 

[keep_rolling]

u guys r right, will do the calcs to see which one is cheaper overall.

 

[wts2013]

hahaha it is always for your benefit to backdate to last birthday, cos premium is lower for a younger age, moi only buy whole life policy, premium is fixed, so backdate to last birthday then premium is cheaper for many many years lor, hahaha

n luckily can backdate hor, cos moi always buy at time just past birthday, hahaha

oops moi can get money back so no problem, your's is term leh but still pay less lor hahaha