Close
Close

Buy a Life Insurance Plan in a few clicks

Now you can buy life insurance plan online.

Kotak e-Term

Protect Your family’s financial future with Kotak e-Term. 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 Lifetime Income Plan

Retirement years are the golden years of life. Know more

Close

Get a Call

Enter your contact details below and we will get in touch with you at the earliest.

  • Select your Query

Thank you

Our representative will get in touch with you at the earliest.

All About Backdating in Life Insurance

Backdating insurance is changing or altering the date you bought the policy to an earlier one. Click here to know in detail, backdating life insurance advantages and when to avoid it.

  • Jan 14, 2020
  • 4,375 Views

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

Download Brochure

Features

  • Life Cover till 85 years for Life & Life Secure Option
  • 3 Payout Options
  • Special Rates for Women
  • Option to exit the policy with premium refund at the age of 60*
  • Special Rates for Non-Tobacco Users
  • Free Medical Check Up every 5th year**

Ref. No. KLI/22-23/E-BB/2435

T&C

- A Consumer Education Initiative series by Kotak Life

Similar Articles

Types of Life Insurance Policies in India

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

Insurance Changes You Need to Make Post Marriage

Is Voluntary Life Insurance the Same as Basic Life Insurance?

Types of Life Insurance Or One Investment, Many Options

Compare Different Life Insurance Products Offered By Kotak Life

Is It Time to Review Life Insurance Policy of Yours?

Health Insurance VS Life Insurance

How Many Insurances Should I Have?

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

All You Need to Know About KYC

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

क्रिटिकल इलनेस राइडर के साथ टर्म इंश्योरेंस के लाभ

Benefits of Buying Term Insurance Plan for Senior Citizens in India

All about Life Insurance Calculators

Does Life Insurance Cover Terminal Illness?

Is Life Insurance an Investment?

A Term Insurance Guide for Disabled People

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

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

Guidelines for Linking Aadhar and PAN to Insurance Policies

Nominee in insurance - A Complete Guide on nomination in insurance

Why is Medical Test Important While Buying a Term Insurance?

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

7 Superficial Reasons People Avoid Buying Insurance Online

Does Life Insurance Pay for Suicidal Death?

Term Insurance Tips for NRIs in India

5 Reasons Why a Women Should Buy a Life Insurance

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

How To Choose The Right Life Insurance

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

Why do I Need Life Insurance?

6 Different Types of Insurance Policies

Difference Between Insurance and Assurance?

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

How Do Term Insurance Plans Differ for Smokers?

Term Insurance Vs Life insurance: Small Details, Big Differences

Important Features of a Term Insurance Plan

जीवन बीमा पर ऋण

Term Life Insurance vs Accidental Death Insurance

Life Insurance vs Mutual Funds

भारत में जीवन बीमा पॉलिसियों के प्रकार

What is Insurance Coverage? Overview, Types, and Examples

What is Group Insurance?

How to Customize Your Life Insurance Policy with Riders

What is the Current Trend in Term Insurance?

Life Insurance for Overweight Applicants

Why Renewal of Term Insurance Plan is Important

What Is a Whole Life Insurance Plan?

वरिष्ठ नागरिकों के लिए ऑनलाइन टर्म इंश्योरेंस प्लान खरीदने के लिए गाइड

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

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

How to Make Death Claims on Life Insurance?

How to Choose a Life Insurance Policy

Adding A Child to Your Life Insurance Policy?

Difference Between Money Back and Endowment Policy

What are the Benefits of Endowment Policy?

How to Buy a Life Insurance Plan?

How to Use Different Types of Life Insurance for Retirement Planning?

Why Term Insurance for Women is Important?

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

Guide for Buying Online Term Insurance Plans for Senior Citizens

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

Customer Awareness on Information Security

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

Types of Insurance You Must Invest in for Secure Future

Life Insurance Plans for Women

5 Smart Steps to keep in mind while buying term policies

Life Insurance Nominees: 5 Must-Know Facts for Beneficiaries

What Happens If I Stop Paying My Life Insurance Premium?

5 Advantages of Life Insurance Going Digital

Life Insurance for Overweight Applicants

Is It Advisable To Have Multiple Life Insurance Policies?

Savings cum Protection Plans Secures Your Family from Unforeseen Events

Life Insurance Policy Closure

Term Insurance Claim Process

Why Your Family Should Know About Your Life Insurance Policy?

Does Life Insurance Policy Cover Covid Death?

Why Life Insurance Is Always a Smart Decision

भारत में सर्वश्रेष्ठ टर्म प्लान कैसे चुनें?

All about IRDAI

Should You Buy Life Insurance After Getting Married?

What is Minimum Life Insurance Policy?

Life Insurance with Money Back vs Without Money Back

Life Insurance for Millennials

Role of Life Insurance in Your Financial Portfolio

Choosing Between Short-Term & Long-Term Insurance Plans

Important Life Insurance Terms You Must Know

What is the Difference Between Insurance and Reinsurance?

Life Insurance Vs. Mutual Funds Investment

Different Types of Insurance Policies in India

Benefits of Term Insurance with Critical Illness Rider

Is it Worth Buying Disability Rider on Term Insurance?

Digital Life Certificate for Pensioners Seeking Pension

Reasons Why Term Insurance Claims Get Rejected

Why Online Term Insurance Plans Cheap?

Key Things to Review in Your Life Insurance Policy Document

When Should You Review Term Life Insurance of Yours?

Is Life Insurance For Millennials Really Needed?

All About Life Insurance and How It Works?

Kotak Life Claim Settlement Ratio

5 Benefits of Gifting Life Insurance Cover to Your Spouse

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

Term Plan with Return of Premium (TROP)

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

Importance of Checking Claim Settlement Ratio before Buying Life Insurance

What are robo-advisors in insurance?

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

Best Insurance Plans in India

5 Reasons Why You Need Life Insurance in College

What is Sum Assured in Endowment Policy?

All about Your Rights and Duties While Buying Life Insurance Policy

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

Voluntary Life Insurance Policy Vs Group Life Insurance

Can NRI Buy Life Insurance in India?

How to Choose Life Insurance for All Ages?

Why You Should Never Cancel Life Insurance Policy

8 Things to Consider Before You Buy Life Insurance

How to Revive the Lapsed Life Insurance Policy?

6 Things You May Not Know about Life Insurance

Details Required To Be Filled In A Life Insurance Form

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

Choosing a Life Insurance Beneficiary

Terms and Conditions of Term Insurance Plans

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

What is Life Insurance?

Top 5 Common Life Insurance Myths and Facts

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

Why One Must Buy Term Insurance before 25 Years

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

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

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

Does Family History Affects your Term Life Insurance Rates?

बीमा क्षेत्र में IRDAI की भूमिका

Think About Life Insurance Sooner than Later

NRI Premium Payment Options

Do Life Insurance Premiums Increase Every Year?

Life Insurance and Millennials

Can An Individual Buy Multiple Term Insurance Plans?

How to Find the Best Term Insurance Plan in Seven Steps

5 Ways to ensure faster settlement of claims

Sabse Pehle Life Insurance

Why Do Life Insurance Agents Avoid Selling Term Plans?

What Is Investment Insurance?

How do life insurance payouts work?

Staying Insured While Investing

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

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

What is Underinsurance & The Dangers of Being Underinsured

How to Calculate Human Life Value(HLV)?

Various Term Insurance Premium Payment Options Available in India

5 Easy Steps to Buying A Policy

FAQs on Life Insurance

Do Your Financial Planning with Life Insurance!

क्या जीवन बीमा एक निवेश है?

What Is Staggered Payment Option Under Term Insurance Policy?

Important Terminologies of Life Insurance

How Much Life Insurance Do You Need?

5 Things to Keep in Mind While Buying Life Insurance Policy

Take 100% Responsibility of Your Family with Term Life Insurance

Who Is A Nominee In A Life Insurance Plan?

In India, should NRIs purchase life insurance?

Health Insurance VS Life Insurance

Biggest Life Insurance Myths

5 Common Life Insurance FAQs and Answers

Always keep your Nominee informed

Insurance Vs Investment - A Guide to Your Financial Goals

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

Life Insurance Beneficiary

Loan Against Life Insurance Policy

Different Types Of Life Insurance In India

जीवन बीमा क्या है?

Most Common Life Insurance Riders to Enhance Your Existing Policy

How Does Life Insurance Work?

Role of IRDAI in the Insurance Sector

What happens to joint life insurance after divorce?

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

How Much Life Insurance Cover Do I Need?

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

What Is Insurance Rider and It’s Benefits?

Beware of Phishing & Fraud Insurance Calls

Why Buying a Term Insurance is Important for all Parents

Process of Filing A Claim For Life Insurance

“Life” Insurance or “Death” Insurance?

Life Insurance and Retirement Planning

Choose the Nominee of a Term Life Insurance Plan Wisely

How to Buy a Term Life Insurance Online

How Often You Must Review Your Life Insurance Policy?