Save Age

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A process where the life insurance company will allow you to use a younger age than your current age when pricing your policy. This is normally used when your age nearest is older than your actual age.

For example, assume it’s January and your birthday is in May—four months. The insurance company will treat you as though you are 31 years old when pricing your policy. You can “save age” to allow the insurer to treat you as though you are age 30. When doing this, you will pay an extra premium equal to the difference between the current date and the date required to achieve a younger age for insurance purposes.

Using the above example, you would need to pay at least 3 months of premium to “save age” because of the “age nearest” rules.

See: Age Nearest; Backdating

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