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Picking the right life insurance plan is hard. Between whole term and term life, extravagant premiums, and seemingly nuanced differentiation between an endless variety of plans, it can be difficult (to say the least) to find what works for you. I understand. But did you know that you can actually use your age, or the way you depict your age, to influence your plan and rein in savings? Check out the tips below for more information.

Deduce how the insurance company in question determines age.

While, yes, this advice appears peculiar considering we only have one age (as in you either are 40 or you’re not), the fact is that insurance companies do not always immediately qualify you by your actual age. They may consider you for rates that apply to the age nearest you. For instance, if you’re turning forty in two months, they may look at plans for forty-year-olds rather than thirty-nine-year-olds. In fact, this process is known as age nearest and is actually common practice, so common that your company likely uses this instead of using your actual age.

In light of this, it may behoove you to ensure the company actually qualifies you using your actual age.

Backdate your plan.

Along the same lines of above, this idea falls under the realm of taking advantage of the “age nearest” process. Essentially, if you are turning forty-five in the next three months, you should be able to qualify for age forty-four rates.

Essentially, using the above scenario, if you were to pay three months premium, your policy date would be closest to your previous birthday—which could translate to considerable, substantial savings over the course of your policy. This is because you would be paying the life insurance rates for someone who is a year younger than yourself.

Let’s take a closer look and use some numbers to demonstrate: if the insurance cost for a 44 year old is $1,200, and the premium for 45 is $1,300, then you have the chance to pay an extra three months of premium (aka $300) to save the premium from last year, which would mean that you are saving $100 on your annual premium. Although, in the short-term, saving $100/year does not sound impressive, it could and would accumulate to $2,700 over the course of a 30-year policy. Put frankly, it’s the financially literate decision.

Although there are certainly many ways to save on insurance and you would most certainly be better off talking to an experienced professional, these two tips are just a quick way to save money simply by the way you fill out your life insurance application. If you are interested in learning more, please do not hesitate to reach out to me through my contact page or email.