UNDERSTANDING THE POLICY DATE IN LIFE INSURANCE

Policy Date refers to the effective date of a life insurance policy, which is stated in the contract. The life insurance company uses this date to measure items such as the attained age of the policyholder, policy anniversaries, and the suicide and contestability period. Additionally, the monthly cost of insurance increases typically coincide with this date. The Policy Date may or may not be the same as the original issue date of the policy. This can occur when insurers want to save the previous age of the insured to calculate premiums based on a younger age. To clarify, the Issue Date and Date of Issue are alternate terms for the Policy Date.

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