Washington Life Producer Practice Exam

How many months can a life insurance policy normally be backdated from the date of application?

1. 3 months

2. 6 months

3. 12 months

4. 24 months

The correct answer is: 6 months

Life insurance policies can typically be backdated by up to six months from the application date. This practice allows applicants to lock in a premium rate based on their age at the time of application, which can be advantageous if the applicant is anticipating any changes in health or age that could impact premiums. By backdating, the insurance company effectively allows the policyholder to have coverage starting from a date prior to their application, which often helps in securing a lower premium than they might receive if they were to wait until the application is processed. This is a common industry practice and is designed to provide flexibility for both insurers and policyholders in managing premiums effectively.