All About Backdating in Life Insurance

Buy a Life Insurance Plan in a few clicks

Now you can buy life insurance plan online.

Kotak e-Term Plan

Protect Your family’s financial future with Kotak e-Term Plan. Know more

Kotak Assured Savings Plan

A plan that offer guaranteed returns and financial protection for your family. Know more

Kotak Guaranteed Savings Plan

A plan that offers long term savings and insurance in one premium. Know more

Kotak e-Invest

Insurance and investment in one plan with Kotak e-Invest. Know more

Kotak Health Shield

Insurance against medical expenses related to heart, brain, liver and Cancer. Know more

All About Backdating in Life Insurance

All About Backdating in Life Insurance
  • 14th Jan 2020 |
  • 2,759

As you traverse through life, you realize certain things that should have been done months or years ago. It could be a financial decision that would have benefited your life or a personal resolution. There may not be do-overs to change your personal mistakes but there certainly are for investment choices. If you are a policyholder, backdating your insurance policy could be a remedy to that delayed decision of buying life insurance. Let’s look at what backdating life insurance is, its advantages and the time you should avoid it.

What is Backdating in Insurance?

Backdating insurance is changing or altering the date you bought the policy to an earlier one. You could be changing the date for a less expensive premium or for some other type of benefit. Backdating life insurance depends on your insurer and won’t cost you much if you are altering the date by a month or changing it to a date before the month of September. For example, if you have bought a policy on 22 June but you find out that purchasing it a month ago would have resulted to give better premium rates then you can backdate it.

Advantages of Backdating Insurance Policy

There are several advantages of backdating your insurance policy, some of them are:

1. Low Premiums

Your age plays a big role in the premium cost and backdating can aid in minimizing it by decreasing your age slab. If you are the age of 28 years and will be turning 29 in three
months, the insurer will consider your age as 29. But if you had bought the policy 2 months ago, you would have been 28 years and 5 months, putting you in the age slab of 28.

2. Early Maturity of Policy

If you have bought life insurance in the year 2020 which will mature in 25 years, you can back date insurance policy for early maturity. By altering the year to 2019, the maturity time will decrease by a year. This is a lucrative option for you as a policyholder.

3. Quicker Money-Back Returns

Money-Back returns mature after every five years in the policy term. So if you buy a plan in 2019, your first money-back will be credited in the year 2024. But if you back date
insurance policy to 2018, you will receive the maturity amount in 2023, a year early than the actual date.

4. Policy Matures During Vital Periods

You may not have bought life insurance at the right time but you can back date it so that it matures during important periods of your life like your child’s college education or a future loan payment date. This eases the pressure and makes your financial situation smoother.

5. Edit the Payment Date

If you do not have a steady flow of income and have a seasonal cash inflow, backdating your life insurance policy helps in altering the payment date to ease up future payment dates.

When to Avoid Backdating Insurance Policy?

Even if the advantages of backdating are fruitful, there are certain instances when you should avoid going for this option. Here are some of them:

1. Term Insurance

In the case of term insurance, backdating your policy is not useful as the aim of buying term plan is to ensure you have a life cover for a fixed period. If you end up backdating it, you lose the life cover for that period of time.

2. Younger Age

Backdating for a less expensive premium may not hold good if you are between the age of 20-25 years. When you are younger, the premium prices do not fluctuate much but tend to increase as your age increases. Hence, using this option will not benefit you at a younger age.

3. Fewer Funds

If you backdate your policy, you have to pay all the premiums of the backdated period. And it does not come cheap and can cost you a lot as your insurer might charge a considerable amount apart from the premiums.

Kotak e-Term Plan

Download Brochure


  • Nominal Cost
  • Multiple Plan Options
  • Flexible Payout Options
  • Critical Illness Rider
  • Tax Savings
  • Long term Coverage

Ref. No. KLI/22-23/E-BB/492


Browse our library of resources

- A Consumer Education Initiative series by Kotak Life

Similar Articles

Term Insurance Vs Car Insurance: A Budgetary Choice You'll Regret

Beware of Phishing & Fraud Insurance Calls

Life Insurance and Millennials

Nominee in insurance - A Complete Guide on nomination in insurance

Is It Time to Review Life Insurance Policy of Yours?

What is Life Insurance?

How Much Life Insurance Do You Need?

Choosing Between Short-Term & Long-Term Insurance Plans

In India, should NRIs purchase life insurance?

How to Choose Life Insurance for All Ages?

Different Types of Insurance Policies in India

Important Features of a Term Insurance Plan

How to Customize Your Life Insurance Policy with Riders

Is It Advisable To Have Multiple Life Insurance Policies?

Everything You Must Know About ULIP Riders

What Is a Whole Life Insurance Plan?

How to Choose the Right Life Insurance Policy for Your Age?

All about Life Insurance Calculators

Why Term Insurance for Women is Important?

Terms and Conditions of Term Insurance Plans

5 Advantages of Life Insurance Going Digital

What is Group Insurance?

When Should You Review Term Life Insurance of Yours?

Life Insurance Vs. Mutual Funds Investment

What Is Staggered Payment Option Under Term Insurance Policy?

Guidelines for Linking Aadhar and PAN to Insurance Policies

What Is The Life Insurance Penetration In India And How Does It Compare Globally?

Is Life Insurance For Millennials Really Needed?

4 Benefits of Gifting Life Insurance Cover to Your Spouse

10 Most Frequently Asked Questions - FAQs on Term Insurance

Life Insurance for Overweight Applicants

Savings cum Protection Plans Secures Your Family from Unforeseen Events

Why One Must Buy Term Insurance before 25 Years

Why Online Term Insurance Plans Cheap?

Why is Medical Test Important While Buying a Term Insurance?

Is Voluntary Life Insurance the Same as Basic Life Insurance?

Role of IRDAI in the Insurance Sector

5 Things to Consider Before You Buy Life Insurance

Sabse Pehle Life Insurance

Choosing a Life Insurance Beneficiary

Staying Insured While Investing

How Many Insurances Should I Have?

Term Insurance Vs Life insurance: Small Details, Big Differences

Different Kind of Deaths that are Not Covered in a Term Insurance Plan

What Happens If I Stop Paying My Life Insurance Premium?

How to Calculate Human Life Value(HLV)?

Life Insurance Policy Closure

Life Insurance Plans for Women

Why Your Family Should Know About Your Life Insurance Policy?

Customer Awareness on Information Security

Why do most Indians choose the wrong way to buy life insurance?

5 Easy Steps to Buying A Policy

Is it Possible to Make Changes in a Term Plan’s Specification Post Purchase?

Types of Insurance You Must Invest in for Secure Future

What is Sum Assured in Endowment Policy?

Choosing the Right Life Insurance

Difference Between ULIP and Endowment Plan?

Important Terminologies of Life Insurance

Why Do Life Insurance Agents Avoid Selling Term Plans?

What is a Single Premium Term Plan and its Tax Benefit?

What are robo-advisors in insurance?

ULIPs: Suitable for all

6 Things You May Not Know about Life Insurance

Why Life Insurance Is Always a Smart Decision

Term Insurance Tips for NRIs in India

Insurance Changes You Need to Make Post Marriage

Does Life Insurance Cover Terminal Illness?

Most Common Life Insurance Riders to Enhance Your Existing Policy

“Life” Insurance or “Death” Insurance?

Details Required To Be Filled In A Life Insurance Form

Term Life Insurance vs. Accidental Death Insurance

Process of Filing A Claim For Life Insurance

भारत में जीवन बीमा पॉलिसियों के प्रकार

NRI Premium Payment Options

1 CR Term Insurance Plan: How to Pick the Best 1 CR Term Plan

What Is Social Impact Investing and How Does It Benefit Society?

When are Millennials required to take out a life insurance policy?

Can You Transfer Life Insurance Policies to Another Company in India?

How to Select a Perfect Life Insurance Policy in India to Protect Your Future?

Benefits of Term Insurance with Critical Illness Rider

Can NRI Buy Life Insurance in India?

Term Insurance Claim Process

Voluntary Life Insurance Policy Vs Group Life Insurance

Life Insurance vs Health Insurance

Compare Different Life Insurance Products Offered By Kotak Life

Take 100% Responsibility of Your Family with Term Life Insurance

What Is the Procedure to choose a nomination in life insurance policy?

How Much Life Insurance Costs and How Much Insurance Cover You Need?

Can You Apply For A Life Insurance After Getting Heart Attack? Here is Everything You Need To Know

How To Use Different Types Of Life Insurance For Retirement Planning?

Why Renewal of Term Insurance Plan is Important

All You Need to Know About Life Insurance - Its Benefits, Features, and Types of Life Insurance

How to Revive the Lapsed Life Insurance Policy?

How to Find the Best Term Insurance Plan in Seven Steps

7 Superficial Reasons People Avoid Buying Insurance Online

5 Things to Keep in Mind While Buying Life Insurance Policy

Term Insurance for Home Loan: How Term Plan Helps in Paying Off Home Loan?

Important Life Insurance Terms You Must Know

Is it Possible to Reduce Life Insurance Premium without Affecting Sum Assured?

How to Choose a Life Insurance Policy

Life Insurance Beneficiary

Does Family History Affects your Term Life Insurance Rates?

Comparing low premium term insurance Is Not the Only Factor While Buying Life Insurance

Is Life Insurance an Investment?

Why You Should Never Cancel Life Insurance Policy

How to Make Death Claims on Life Insurance?

What Is Insurance Rider and It’s Benefits?

Does Life Insurance Policy Cover Covid Death?

What is Human Life value and a Human Life Value Calculator?

What are the Benefits of Endowment Policy?

Difference Between Term Insurance and Endowment Plan

What is a savings plan?

Why You Should Buy Term Insurance under the MWP Act (Married Women’s Property Act)?

Important Factors to Consider While Choosing the Right Term Period for Your Term Insurance Plan

Term Life Insurance Vs Money Back Life Insurance

What is Minimum Life Insurance Policy?

What is Underinsurance & The Dangers of Being Underinsured

Importance of Checking Claim Settlement Ratio before Buying Life Insurance

Best Insurance Plans in India

Types of Life Insurance Or One Investment, Many Options

What is an Endowment Plan?

What Should One Expect During the Medical Evaluation for Life Insurance?

Key Things to Review in Your Life Insurance Policy Document

How Often You Must Review Your Life Insurance Policy?

Adding A Child to Your Life Insurance Policy?

Kotak Life Claim Settlement Ratio

What Should One Consider Buying: Term Insurance or Traditional Life Insurance

How to Buy a Life Insurance Plan?

Difference Between Insurance and Assurance?

All About Life Insurance and How It Works?

Top 5 Common Life Insurance Myths and Facts

All about IRDAI

5 Smart Steps to keep in mind while buying term policies

Can a Term Plan be the Substitute for a Retirement Plan?

Life Insurance vs Mutual Funds

Are Deaths Due To Coronavirus Covered by Kotak E-Term Plan?

What is the Difference Between Limited and Regular Pay Insurance Plan?

Insurance Vs Investment - A Guide to Your Financial Goals

Life Insurance with Money Back vs Without Money Back

Benefits of Buying Term Insurance Plan for Senior Citizens in India

What Is Investment Insurance?

FAQs on Life Insurance

Should you buy a Renewable Term Life Policy?

First Job? Here’s Some Tips on How to Manage Finances

Always keep your Nominee informed

5 Ways to ensure faster settlement of claims

Life Insurance for Overweight Applicants

Types of Life Insurance Policies in India

What Is Financial Planning?

Reasons Why Term Insurance Claims Get Rejected

9 Most Important Things You Must Learn About Paying Life Insurance Premium

What Is Insurance Coverage?

5 Reasons Why a Women Should Buy a Life Insurance

Unit-Linked Life Insurance (ULIPs) vs. Term Insurance

Why do I Need Life Insurance?

Think About Life Insurance Sooner than Later

Life Insurance and Retirement Planning

Is Return-of-Premium (ROP) in Life Insurance Worth It?

Digital Life Certificate for Pensioners Seeking Pension

Biggest Life Insurance Myths

6 Different Types of Insurance Policies

Difference Between Money Back and Endowment Policy

Who Is A Nominee In A Life Insurance Plan?

Choose the Nominee of a Term Life Insurance Plan Wisely

Why Buying a Term Insurance is Important for all Parents

Different Types Of Life Insurance In India

Guide for Buying Online Term Insurance Plans for Senior Citizens

5 Reasons Why You Need Life Insurance in College

Loan Against Life Insurance Policy

How Much Life Insurance Cover Do I Need?

A Term Insurance Guide for Disabled People

How Do Term Insurance Plans Differ for Smokers?

How Does Life Insurance Work?

Can An Individual Buy Multiple Term Insurance Plans?

Life Insurance for Millennials

A Step-by-Step Guide: How To Make An Investment Plan?

All about Your Rights and Duties While Buying Life Insurance Policy

Health Insurance VS Life Insurance

5 Common Life Insurance FAQs and Answers

How to Buy a Term Life Insurance Online

Does Life Insurance Pay for Suicidal Death?

Do Life Insurance Premiums Increase Every Year?

What is the Current Trend in Term Insurance?

Is it Worth Buying Disability Rider on Term Insurance?

Do Your Financial Planning with Life Insurance!

Various Term Insurance Premium Payment Options Available in India

What Is Surrender Value (Cash Surrender Value) in Insurance and how is it calculated?