Insurance dating

This will ensure that you don’t end up paying a higher backdating interest.An important thing to note here is that backdating works in the favor of policyholders in endowment and money-back plans but in case of term insurance plans, it is quite the opposite. In case of endowment plan, the survival benefits accumulate much earlier.This back-date policy will reduce the premium liability for the insured during the policy tenure.Let’s look at some advantages of backdating insurance policy.For instance, tourist guides have the highest earning during the vacation period (i.e.

Suppose you are falling in a senior premium slab just by a month’s time, then backdate the policy only by a month and avail the last premium rates.Though the difference in the premium amount seems to be minimal but it proves quite beneficial in the long run.Throughout the year, all of us look to invest in tax saving tools and one of the most preferred options is a life insurance policy.Backdating comes very useful if you are one of those taxpayers who are looking to buy a life insurance policy to exhaust the section 80C limit on this year and start paying the premium on a monthly/quarterly basis from the next year.In such a case, the policyholder can pay the premiums for the current financial year at one go, whereas, for the coming year he can deposit the premiums on the due date, set by his insurer.Backdating also takes care that the maturity date coincides with this significant date.

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