Back-Dating or Dating-Back of LIC policy

A policy can be dated back i.e. allowed to commence on any day within the same financial year. This is called as “Back-dating” or Dating-back of LIC Policy.

Most of the policies sold by Life Insurance Corporation of India can be dated-back except Term Insurance plans, ULIP’S, Annuity Plans, and Health Insurance plans. Dating back can be allowed only within the same financial year. Back dating not allowed under plans 935, 849, 850, 855, 854, 952, 904, and 905.

Policyholder’s or customers willing to opt for Back-dating or Dating-back of LIC Policy need to pay Back-dating interest as applicable at the time of completion of the policy, at the rates fixed by the Life Insurance Corporation from time to time.

Dating-back interest will be charged for the period in excess of one month. However, if the policy is backdated to lean months, viz. April, May, July & August, interest is to be charged for the period in excess of three months. The period up to 14 days is to be ignored and 15 days or more is to be rounded to a month for this calculation.

Benefits of Back-dating or Dating-back of LIC Policy:-

Early Maturity of Survival benefits – Benefits under the policy like survival benefits or maturity would occur earlier depending on the number of months policy is back dated.

 Income Tax Saving under 80C – Policy can be backdated for Income tax benefit under Section 80c. For example: A policy introduced in march can be backdated to any date in the current financial year with Monthly, quarterly or half yearly mode and the premium for entire year can be paid at that time along with the applicable back dating interest.

Date back to Special dates like Birthday or anniversary – Policyholder can date back the insurance policies to some important date like birthdays, anniversaries etc of self, spouse or kids depending on whose policy it is. This would come up as sentimental investment or a gift for the loved ones on their special occasion. Even the maturity or Survival benefits of the policy would act like a gift in future for your loved one on their special day.

Premium benefit or Lower Premium’s depending upon age – You can also benefit from the difference of premium as per your age taken in consideration as your age would be calculated as per the date of commencement of policy.

Premium Liability distribution – You can plan you premium intervals taking into consideration your earlier policy premiums and accordingly date back to certain date or month so that both premiums do not overlap or you do not have a higher liability in a single month.

LIC Plans which can be Back-dated:

Endowment Plans * Lic’s New Jeevan Anand * Lic’s Jeevan Labh * Lic’s New Endowment Plan * Lic’s Single Premium Endowment Plan * Lic’s New Bima Bachat * LIC’s Jeevan Lakshya * LIC’s Aadhaar Shila * LIC’s Aadhaar Stambh Whole Life Plans * LICs Jeevan Umang Money-Back Plans * LIC’s Bima Shree Policy Document * LIC’s Jeevan Shiromani Policy Document * LIC’s NEW MONEY BACK PLAN – 20 YEARS * LIC’s NEW MONEY BACK PLAN – 25 YEARS Children Plans * LIC’s NEW CHILDREN’S MONEY BACK PLAN * LIC’s Jeevan Tarun