Glossary

Backdating

Setting a policy's effective date earlier than its issue date so the premium is based on a younger age, in exchange for paying the back premiums.

Also called: saving age, backdating a policy

Backdating means choosing a policy date earlier than the date the policy is actually issued, usually to "save age" — to lock in the premium for an insurance age you just passed. Because insurers price coverage by age, a younger insurance age can mean a lower premium for the life of a level-premium policy. Many states limit backdating to six months.

The catch is that you pay premiums for the months between the backdated date and the issue date, even though no coverage existed then. Hypothetical example: a man who reached insurance age 46 two months ago backdates his policy to keep the age-45 rate of $80 a month instead of $86. He pays two months of back premium, $160, up front and saves $6 a month afterward, so the trade pays off after about 27 months.

Backdating also moves the policy anniversary, which can shift when the contestability and suicide periods end and, on term policies, when the level period expires: a 20-year term would end months sooner. It makes the most sense on long-term coverage when the price gap between ages is meaningful. See backdating a life insurance policy to save age and age nearest vs last birthday: why your insurance age rounds up for how insurers count age.

Last reviewed October 4, 2026

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Related terms

Issue age The age an insurer assigns you on the policy date to set your premium, counted from your nearest or your last birthday depending on the company. Policy date The date printed in a life insurance contract from which premium due dates, anniversaries and usually the insured's rating age are measured. Attained age The insured's current age on a given date, used to price renewals, conversions and the rising monthly charges inside universal life. Premium The amount a policy owner pays an insurer, monthly, quarterly, yearly or in one sum, to keep life insurance coverage in force. Policy anniversary The yearly return of a policy's starting date, when many contract features, such as dividends, rate changes and options, take effect.

Related guides

Age nearest vs last birthday: why your insurance age rounds up Many insurers price on the age nearest your birthday, so you can count as a year older up to six months before turning that age. How it works and how to use it. Backdating a life insurance policy to save age Backdating sets your policy date up to six months back so the premium uses a younger age. How the lump-sum catch-up works, state limits, and when it pays off.