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What Is Backdating? And How Can it Help Reduce Your Life Insurance Rates?

Life insurance companies use many factors when determining your rates for a policy, including your driving record, health history, and age. The latter is one of the main determinants of your rate: the younger and healthier you are, the cheaper life insurance will be, so some people choose to backdate their policies to lower their life insurance rates. Backdating can be used to lower your age on your policy, which will qualify you for reduced premiums on your policy. But how does it all work? And can it be used against you?

What Is Backdating?

illustration of a calendar — *Backdating can save you money by using the age nearest your half birthday instead of your actual age.*

While it might seem that determining your age for a life insurance policy should be very straightforward, it can actually get a little complicated. Some life insurance companies will use your actual age when you apply for the policy, while others will use your age at your next nearest birthday or half birthday. This means that, for example, if you were to turn 40 on March 4, you would be considered 40 on a policy application only until September 4 ( 6 months after turning 40). If you applied for a life insurance policy after September 4, you would be considered 41 years old to the life insurance company, since that company sets their rates according to your age at your next nearest birthday.

But some insurers allow you the option to backdate your policy. This means that you request the life insurance company assign your policy date to your last birthday, even if it has passed. For example, if you turned 40 in March and it is now November, you will technically be considered 41 to the life insurance company. But, you can request that the insurer backdate your policy to your birthday in March.

Disadvantages Of Backdating

You can only backdate your policy to your last half birthday, and no further than that. It might help to lower your premiums, but you should know that there is a disadvantage to backdating your life insurance policy. If you choose to backdate your policy, your premium payments will be due from the policy date, which means you will have to pay for any additional months from that 6-month mark, even though you were not technically insured at that point.

To return to our previous example: it’s now December, meaning you’re past your six-month half birthday period (September 4), and you decide you want to backdate your policy to your 40th birthday in March. You will get the 40-year-old rate instead of the 41-year-old rate, but will have to pay 4 months of extra premiums.

Should You Backdate?

Although you will have to pay for a few extra months if you want to backdate your life insurance policy, you could end up saving hundreds of dollars in premiums over the years. It makes the most sense for people who are older to backdate their policies, because the older you are, the higher your life insurance premiums will be.

If you are considering backdating, it would be wise to compare policies from different companies and work with an agent who can help you. They will be able to calculate the costs, and determine how much you will save on your premiums monthly or annually if you decide to backdate. They can also determine how much you will need to pay upfront.

To find the right policy for you, consider using online tools, or speaking with an agent. We have provided the top life insurance companies in the nation that offer hassle-free assistance and the most competitive rates below. Always check multiple sites to make sure you have bargaining power and know the different advantages of each company. Make sure a hard time isn’t made harder by a financial burden, check life insurance rates today.

How Life Insurance Works With Your Will

If you have a life insurance policy, you’ve taken an excellent step towards protecting your family’s financial future. And if you’ve taken another step in that direction by writing your will, it is important to understand how your life insurance policy will work with your will. Both will distribute money to your loved ones after you pass, but in different ways. You might be wondering if you should include your life insurance policy in your will, or if you can use your will to distribute your life insurance, so let’s take a look at what you need to know when you have both a life insurance policy and a will.

Is Life Insurance Included In A Will?

last will written in pen — *Your life insurance death benefit can be included in the valuation of your estate in certain cases, but it is not considered an asset.*

A will is a legal document that lays out your final wishes and gives instructions for how you want your assets distributed after you pass away. This does not include assets that you own with other people, like a house, and it does not include your life insurance policy’s death benefit. Your death benefit can be included in the valuation of your estate in certain cases, but it is not considered an asset. This is because your life insurance payout is meant for your life insurance beneficiary once you die, and is only payable after your death in most cases, meaning it should not be included in your will.

The only time that your life insurance becomes part of your estate is if your named life insurance beneficiaries have predeceased you. In this case, the death benefit will be distributed according to your will and the beneficiaries named in it.

Does Your Life Insurance Need To Have The Same Beneficiary As Your Will?

The person/people named in your will and your life insurance beneficiary(ies) do not have to be the same people. For example, you can name your children as the beneficiaries of your life insurance policy, and at the same time, you can use your will to distribute assets to your spouse, or vice versa. You can also choose to make the beneficiary of both your life insurance and will the same person. Your will and life insurance policy allow you to have multiple beneficiaries, as well as primary and contingent beneficiaries. You can also change these beneficiaries at any point in time, if you need to.

Now that you are aware of the difference between the beneficiaries of a will and a life insurance policy, you know how these documents work differently, and how they can work together. Your life insurance policy will go to your specific beneficiary, and that does not necessarily have to be the same person you name as a beneficiary in your will.

If you’re on the lookout for a life insurance policy, there are many different kinds to choose from, including whole life insurance, term life insurance, and final expense insurance, so if you’re not sure where to begin, consider using online tools, or speaking with an agent. The right policy for you is out there! We have provided the top insurance companies that offer life insurance policies below; each can give you hassle-free assistance and the most competitive rates in the nation. Always check multiple sites to make sure you have bargaining power and know the advantages of each company. Make sure a hard time isn’t made harder by a financial burden, check life insurance rates today.

How Does The Life Insurance Underwriting Process Work?

If you’ve been looking for a life insurance policy, you probably know that you’ll need to go through the underwriting process to determine how much you will pay for your monthly premiums. But just what is this process? It simply means that, when you apply for a life insurance policy, the insurer will gather information about you so they can determine how much of a risk you will be to insure. It might sound a bit scary, but it is a very routine process, and will not prevent you from finding a great policy at an affordable price. While some insurance companies will have different criteria for their underwriting process, there are some general things you can expect.

What Life Insurance Companies Will Look At

In order to determine if they should insure you, and how much they should charge you for premiums, life insurance companies will need to gather information from you to get a glimpse of what your overall life expectancy might be. They’ll want to know if you have a relatively healthy lifestyle, or if there might be anything you are engaging in that could lower your life expectancy, such as smoking or doing a hazardous job. Things like that will be taken into account, which could mean higher rates or possible denial of your application.

The factors that insurers take into account include: clipboard with medical information on it

Medical Factors– Insurers will want to know your height and weight, if you smoke, if you use any prescription or recreational drugs such as marijuana, if you have a history of medical conditions like heart disease or diabetes, and your family’s medical history.
Lifestyle Factors– They will also look at your driving and criminal record, and will want to know about anything risky that you engage in, such as skydiving or even foreign travel.
Financial Factors– Finally, you will have to disclose your current occupation and income, as well as your financial history, including any bankruptcies.

How the Underwriting Process Works

Now to look at how the underwriting process works when you apply for a life insurance policy. Your insurance company will go through the following steps:

Reviewing your application– The insurer will check your application and make sure that the information you provided is complete and correct, including your listed occupation, your date of birth, and what type of coverage you are looking for.
Administering a medical exam– Depending on the type of life insurance policy that you choose, you might have to undergo a medical exam to determine how healthy you are. It will check your weight, height, and blood pressure, and you’ll be required to give blood and urine samples. However, if you choose to purchase a no medical exam life insurance policy, you will skip this step.
Checking databases– After reviewing your application and your medical exam, the insurer will look at some third-party sources to get information, including your driving record and prescription records over the last few years. This is to make sure that you did not lie about your medical history on your application, and to make sure that you do not have any past DUIs or major infractions on your driving record.
Requesting your physician’s statement– This step will usually apply to you if you are older and applying for a large amount of coverage. Life insurance companies might ask your physician for a statement certifying that you are in good health, to make sure that you are not taking out a life insurance policy because you are battling a terminal illness or are likely to pass away soon.

The underwriting process can take up to 8 weeks. Once it is complete, your insurance company will assign you an insurance classification. There are four basic classifications that determine your rate and eligibility for a policy: gold circle seal

Preferred Plus is the best rating that you can receive, and will allow you to get the lowest rates available.
Preferred means you are in fairly good health and can receive affordable premiums.
Select classification means you will be approved, even though you might have a history of previous illnesses.
Standard classification means you have a family history of health problems and other issues, and that you will pay higher premiums.

Every life insurance company has different criteria for its underwriting process, which is why it is important to shop around and compare plans from multiple insurers. There are many different kinds of life insurance policies to choose from, including whole life insurance, term life insurance, and final expense insurance, so if you’re not sure where to begin, consider using online tools, or speaking with an agent. The right policy for you is out there!

We have provided the top insurance companies that offer life insurance policies below; each can give you hassle-free assistance and the most competitive rates in the nation. Always check multiple sites to make sure you have bargaining power and know the advantages of each company. Make sure a hard time isn’t made harder by a financial burden, check life insurance rates today.

How Does Life Insurance Work During a Divorce?

A divorce is one of the hardest things you can go through in life. On top of dealing with the loss of your love and partnership, you also have to deal with splitting everything you have built together between the two of you. When sorting all of these things out, one of the things you will have to consider is your life insurance policy: what exactly happens to it when you get divorced? Will you need to purchase a new policy?

Is Life Insurance Considered an Asset?

illustration of money — *Life insurance is not considered an asset in a will.*

When going through a divorce, you and your ex will most likely have to split your assets in half between the two of you. An asset is considered anything of monetary value, such as cash, real estate, and any other valuables that you own jointly. Life insurance is considered an asset in some cases, depending on what type of policy it is.

Term life, which covers you for a specific period of time, does not have cash value, so it is not considered an asset. But permanent life insurance, which is a life-long policy with a cash value that grows over time, can be considered an asset because of that cash value. So, if you have a permanent life insurance policy, it might be included in your list of assets, and you’ll have to split the cash value.

What If You Have Joint Life Insurance?

Joint life insurance covers two people for the price of one, which is why it is popular amongst married couples. If you did choose to buy life insurance jointly with your ex-spouse, you will have to consider dividing the policy with your ex-spouse, since joint life insurance policies are typically permanent life insurance policies. Speak to your life insurance company and ask for information on how to split the policy if you are interested in keeping it.

Should You Remove Your Spouse as Your Beneficiary?

If your ex-spouse is named as the beneficiary of your life insurance policy, you can change your beneficiary to someone else without any problems if that is what you wish to do. All you have to do is contact your life insurance company and fill out a form to change the beneficiary. But if you owe alimony or child support, you may be ordered to keep your ex as your beneficiary.

What If You Took a Policy Out on Your Ex?

If you took out a life insurance policy on your ex-spouse and you are named as a beneficiary, you should speak to your attorney about your options. During the divorce proceedings, you might be able to request to keep your life insurance policy in order to protect yourself against loss of alimony or child support payments if something happens to your ex. In some instances, the court can require you to take out a policy on yourself as part of the spousal support agreement.

Looking For A Policy?

Just because you are going through a divorce, doesn’t mean that you shouldn’t have life insurance to protect the financial future of your dependents or business – you might simply have to look for a new policy that better suits your needs. There are many different kinds of life insurance policies to choose from, including whole life insurance, term life insurance, and final expense insurance, so if you’re not sure where to begin, consider using online tools, or speaking with an agent. The right policy for you is out there!

We have provided the top insurance companies that offer life insurance policies below; each can give you hassle-free assistance and the most competitive rates in the nation. Always check multiple sites to make sure you have bargaining power and know the advantages of each company. Make sure a hard time isn’t made harder by a financial burden, check life insurance rates today.

How Does Life Insurance Work For Military Spouses?

If your spouse is entering the military, they will be offered an array of benefits to protect your family, including health insurance and a life insurance policy. Members of the military are automatically enrolled in life insurance coverage through the military’s Servicemember’s Group Life Insurance (SGLI) program. Spouses and other dependents are also given a different version of this policy, which is known as Family Servicemember’s Group Life Insurance (FSGLI). Find out the difference between these policies, what they cover, and if you should have another policy to supplement them.

military funeral with an american flag over a casket — *If your spouse who is in the military passes, their life insurance (SGLI) can provide you coverage of up to $400,000, depending on the policy.*

Military-Provided Servicemembers’ Group Life Insurance (SGLI)

When your spouse enters the military, they will receive life insurance through the VA’s Servicemembers’ Group Life Insurance, or SGLI, program. They will automatically be given the maximum coverage amount of $400,000, but service members can also choose the specific amount of life insurance coverage they want, beginning in increments of $50,000. The price of these policies is about $30 a month. Service members can have access to these policies as long as they remain in the military; coverage is lost if they leave the military.

Family Servicemembers’ Group Life Insurance (FSGLI)

At the same time that your spouse receives their SGLI policy, you and your family will also be enrolled in the version for dependents of military members, known as Family Servicemembers Group Life Insurance, or FSGLI. While this is a good program, the coverage amount for this type of insurance is usually not enough to cover most military family’s needs. FSGLI only provides up to $100,000 of coverage for spouses and $10,000 of coverage for each dependent child. Premiums for this policy are generally $0.50 to $5.00 per each $10,000 increment, depending on the age of the policyholder, and the price will increase as you age. Premium payments will be automatically deducted from your paychecks. This coverage also ends once your spouse leaves the military.

Other Options

illustration of a family under an umbrella. — *You have other life insurance options for your family other than what the military provides.*

You and your family have other options if you need more coverage than what is offered by the military. Remember, you will need a policy that will at least cover burial costs, as well as one or two years’ worth of living expenses.

If your SGLI and FSGLI coverage are not enough to cover these expenses, you or your spouse can purchase additional life insurance for low rates, you just have to compare plans from different companies to decide which policy suits your needs. For example, if you are looking for short-term life insurance, a term life insurance policy might be best for you, but if you want a policy that will cover you for your whole life, there are multiple permanent life insurance policies to choose from.

The best way to understand how life insurance works, and find the right policy for you and your specific needs, is by working with an agent who specializes in life insurance. We have provided the top life insurance companies in the nation below; each offers hassle-free assistance and the most competitive rates. Always check multiple sites to make sure you have bargaining power and know the advantages of each company. Make sure a hard time isn’t made harder by a financial burden, check life insurance rates today.

When Is Whole Life Insurance Worth It?

There are a lot of different types of life insurance policies to choose from, and it can be confusing trying to figure out the right one for you. For example, whole life insurance, a type of permanent life insurance policy, is a more expensive policy than others, but it can be worth it for some people to spend the extra money on. It’s a type of policy that is worth looking into, but if you are considering purchasing whole life insurance, you’ll need to review what these policies entail to see if one might be right for your and your family’s needs.

illustration of a man holding a large bag with a money sign on it — *If you have a high annual income, then a whole life insurance policy is a better fit for your family.*

If you are in the following situations, you might want to consider a whole life insurance policy:

You have a high annual income, typically over $250,000, or have over $1 million in assets. Whole life will provide high coverage options, unlike other life insurance policies.
You want premium rates that remain the same throughout the life of the policy. With a whole life insurance policy, there won’t be any premium rate increases due to your age, health, or any other changes to your circumstances.
You would like the option of a cash value that you can borrow from while you are still alive. Borrowing against your policy would be like taking out a loan without any taxes on it.
You would like lifetime coverage. Unlike with other policies, such as term life insurance, you will have coverage for the rest of your life, which will ensure that your family will receive the death benefits, as long as you have paid your premiums.
If your family will have to pay a lot of taxes on your assets when you pass away, the coverage offered by a whole life policy would be enough to cover them and then some, so your family will not have to pay any estate taxes out-of-pocket.
You have maxed out any other tax-deferred investment options, such as your 401k, IRA or Roth IRA. If this is the case, a whole life insurance policy will be a great way to provide more money for your family.

If any of the above applies to you, you should look into a whole life insurance policy. On the other hand, if you want a cheaper policy, and are only interested in a policy that will cover your debts, like your mortgage, for a limited period of time, a term life insurance plan might be a better fit. Or if you want a very economical policy with just enough coverage for your funeral and some debts, a final expense policy might be best for your needs. It all depends on what your priorities are, and how much coverage you need to make sure your family is financially secure in the event of your passing.

Your family has financial obligations that will not go away when you are gone; they will need your help more than ever with their expenses, and the last thing you want them to worry about is money while they are grieving. There are many great affordable life insurance options to choose from that will provide enough money for your family, for a low monthly price. The best way to find the right life insurance policy for you and your specific needs is by working with an agent who specializes in life insurance. We have provided the top life insurance companies in the nation below; each offers hassle-free assistance and the most competitive rates. Always check multiple sites to make sure you have bargaining power and know the advantages of each company. Make sure a hard time isn’t made harder by a financial burden, check life insurance rates today.

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