Backdating explain


17-Jan-2020 00:31

We will send you a statement of reasons for our decision as soon as possible.

Either way, you can generally backdate to save age up to six months.

Say, for example, backdating would save me

Either way, you can generally backdate to save age up to six months.

Say, for example, backdating would save me $1,000 a year in premiums.

If my annual premium is $10,000 and I “wasted” $5,000 in first year premium by backdating six months, you can see that my break even is in 5 years (not accounting for time value of money). However, if the annual premium was $30,000 and backdating saved me $1,000 a year, then I “wasted” $15,000 in first year premium and my break even would be much further out and it probably would not be worthwhile to me.

To calculate this appropriately I might also incorporate a time value of money.

||

Either way, you can generally backdate to save age up to six months.Say, for example, backdating would save me $1,000 a year in premiums.If my annual premium is $10,000 and I “wasted” $5,000 in first year premium by backdating six months, you can see that my break even is in 5 years (not accounting for time value of money). However, if the annual premium was $30,000 and backdating saved me $1,000 a year, then I “wasted” $15,000 in first year premium and my break even would be much further out and it probably would not be worthwhile to me.To calculate this appropriately I might also incorporate a time value of money.

,000 a year in premiums.

If my annual premium is ,000 and I “wasted” ,000 in first year premium by backdating six months, you can see that my break even is in 5 years (not accounting for time value of money). However, if the annual premium was ,000 and backdating saved me

Either way, you can generally backdate to save age up to six months.

Say, for example, backdating would save me $1,000 a year in premiums.

If my annual premium is $10,000 and I “wasted” $5,000 in first year premium by backdating six months, you can see that my break even is in 5 years (not accounting for time value of money). However, if the annual premium was $30,000 and backdating saved me $1,000 a year, then I “wasted” $15,000 in first year premium and my break even would be much further out and it probably would not be worthwhile to me.

To calculate this appropriately I might also incorporate a time value of money.

||

Either way, you can generally backdate to save age up to six months.Say, for example, backdating would save me $1,000 a year in premiums.If my annual premium is $10,000 and I “wasted” $5,000 in first year premium by backdating six months, you can see that my break even is in 5 years (not accounting for time value of money). However, if the annual premium was $30,000 and backdating saved me $1,000 a year, then I “wasted” $15,000 in first year premium and my break even would be much further out and it probably would not be worthwhile to me.To calculate this appropriately I might also incorporate a time value of money.

,000 a year, then I “wasted” ,000 in first year premium and my break even would be much further out and it probably would not be worthwhile to me.

To calculate this appropriately I might also incorporate a time value of money.

Generally speaking, the more months I backdate the longer it will take to break even.

As is often the case, I recently found myself drafting a letter of explanation to a professional advisor explaining something a life insurance agent was attempting to relate.