Define: "Saving Age"
A procedure used to make the effective date of a policy earlier than the application date. Saving age is commonly used to make the insurance age of the insured at policy issue lower than it actually is in an effort to receive a lower premium. Most policies can be backdated up to six months. Saving age is commonly referred to as backdating.
MORE (Saving Age) "BACKDATING "FOR those of you on the verge of getting a policy from an insurance company, backdating could offer advantages.
What it means: Backdating refers to the practice of pre-dating the time at which the policy-holder bought the policy. Suppose X buys a policy on, say, June 4.
The policy is said to have been backdated if the insurance company and X (parties to the contract) together agree to officially show that the policy was purchased on, say, January 4. Backdating is legally permissible, and is used to lower the premium commitment or time the incidence of outflow.
Backdating cannot be effected on a policy more than once. A policy can be backdated at the time of purchase or within a few months thereon.
Further details - Saving Age:: Search 1st Business