The process of assigning an issue date for a life insurance policy or annuity that is earlier than the actual application date. This is typically done to secure a premium that is lower than would otherwise be offered if the insurance company issued the policy with the current date. By backdating a policy, the policyholder is treated as younger (for insurance purposes) than their actual age, resulting in the lower premium. The policyholder must also agree to pay the difference in premiums between the actual (current) date and the chosen (backdated) issue date.
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