What Happens When an Insurance Policy is Backdated?

  • You can backdate your life insurance policy, but not home or auto.
  • Backdating life insurance can result in net lower premiums, but there are limits on how far back you can go.

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Renata Balasco

Senior Content Strategist

Renata joined The Zebra in 2020 as a Customer Experience Agent. Since 2021, she has worked as licensed insurance professional and content strategist.…

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Kristine Lee

Insurance Analyst

Kristine is a licensed insurance agent who joined The Zebra in 2019 as an in-house content researcher and writer. Before joining The Zebra, she was a…

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  • Licensed Insurance Agent — Property and Casualty
  • 5+ years of Experience in the Insurance Industry
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Beth Swanson

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Beth joined The Zebra in 2022 as an Associate Content Strategist. A licensed insurance agent, she specializes in creating clear, accessible content t…

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  • Associate in Insurance

Can you backdate insurance policies?

You cannot backdate auto or home insurance policies, as the practice is considered fraudulent. You can, however, backdate a life insurance policy (usually up to six months). Life insurance backdating happens when an individual uses a previous date, rather than the effective date of their life insurance application, to change their insurance age. 

There are long term benefits to this, though you'll pay more upfront for backdating. Read on to learn more about the pros and cons and whether it's right for you. 

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Backdating life insurance: at a glance
  • Life insurance is more expensive depending on at what age you apply. Backdating by even six months could lower overall premiums. 
  • If you backdate, you have to pay the difference between the backdated policy date and the approval date. This results in a one-time lump-sum payment.

How does backdating insurance work?

Backdating insurance is as simple as changing the effective date of your policy to a time before your application. Most insurance companies only allow you to backdate six months, typically to your last half birthday.

This matters in life insurance because your policy and premiums are tied directly to your age (specifically, your half birthday in the life insurance world) and relative health. So, it may be beneficial for someone who is 39 and 9 months to backdate to their last half birthday, so premiums reflect a 39-year-old rather than that of a 40-year-old. 

Life insurance "age" terms explained:

  • Actual age: your real age
  • Nearest age: the age you're closest to
  • Insurance age: The age at which the insurance company classifies you. This can be manipulated through backdating.

So why do it? Backdating allows insurance companies to offer you a lower premium by insuring you at a "younger" state. An important note: life insurance premiums increase as you age; if you apply for a policy at 40, you'll be offered a higher rate than if you had applied when you were 20. By backdating, even by only six months, you can save on monthly premiums. However, you'll have to pay the difference up front.


Should you backdate your insurance policy?

Backdating your life insurance might feel like a no brainer — but it’s not all upside. While it can lock in a lower rate, it also means paying premiums for months that have already passed. Like most insurance moves, it’s worth weighing the pros and cons before contacting your agent.

Backdating may be a good fit if...
  • You're nearing a milestone birthday (e.g., 30, 40, 50) and want to lock in a lower rate

  • You can afford the lump-sum payment to cover backdated months

  • You're buying whole life insurance and plan to keep the policy long-term

  • You’re able to be strategic about finances and want to minimize lifetime premium costs

  • You're a seasonal worker—backdating to a higher-income season could unlock better rates.

Backdating might not be worth it if...
  • You're younger (under 25), where premiums are already low

  • You’re on a tight budget and can’t cover extra upfront costs

  • You’re buying a temporary term policy, where savings are minimal

  • You're not close to a birthday that would heavily affect your rate bracket


Is backdating right for you? 

Here's the bottom line:  backdating tends to be more worthwhile for people over 25, when premium jumps become more noticeable. For younger applicants, the savings often aren’t significant enough to justify the extra cost.

To determine if backdating is the right call, ask yourself the following questions: 

  1. How much will I save each month by backdating? 
  2. What will I owe upfront to backdate the policy?
  3. How long will it take to break even?

And while you can’t truly turn back time, many life insurers let you rewind your policy start date by up to six months — which could lead to real savings if the math makes sense. 

Not Sure If You Should Backdate? Let the Numbers Decide
What to Calculate How to Do It What it is
Monthly Savings Premium without backdating − Premium with backdating The amount you save each month by backdating
Potential Total Savings Monthly savings × policy term (in months) How much you’ll save over the life of the policy
Upfront Cost Premium with backdating × number of backdated months What you’ll pay up front to start coverage earlier
Break-Even Point Upfront cost ÷ monthly savings How long it takes before the savings outweigh the upfront cost

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Frequently asked questions — Backdating insurance policies

To backdate an insurance policy means that you retroactively change the policy effective date to sometime in the past. In life insurance, this is allowed for up to six months prior. However, you are responsible for backpaying the premium difference.

In auto and home insurance, backdating is not allowed. It is considered fraudulent and illegal. Life insurance companies, however, allow backdating. Unless you're trying to backdate a policy for someone who's recently deceased to a time before their death; this would, of course, be illegal.

Life insurance companies allow backdating to your last half birthday, so the limit is six months maximum.