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Benefits of taking an Insurance policy in March rather than next April

Can we travel into past? Obviuosly no. Then can we buy a policy with past date? Obiviously Yes.

Most of the people do not know that there exists an option where they can pay for a policy today by keeping policy commencement date or start from the past till start of new financial year.

This option is available in all LIC plans except term plan and annuity plans.

Why is this needed? or what are the benefits?

  • The premium on an insurance policy gets reduced by dating back the policy where age of the person insured is an year less.
    • Eg. If a person with birth month November 1991 starts in march then his age is 30, if it is backdated to April then age is calculated as 29. And so premium is a little less comparitively.
  • Maturity waiting period is an year less. Or early return on investment.
    • Eg. If a person starts a policy for 25 years then maturity is after completing 25 years. On the other hand if it is backdated then maturity amount is received an year ealier i.e., after 24 years only. 
  • Choose any date which you can remember or a memorable one.
    • Child's birthday - you keep saving amount on childs birthday.
    • Anniversary or self birthday - easy to remember dates.
So are you still thinking to buy a policy later to miss these benefits? Stop thinking and act now.

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