A. Back date is a little known secret in term life insurance, If you meet the requirement, back date option can save you lots of money. Let me use an example to illustrate.
Your birthday is 1/2. Today is 1/1. Tomorrow you will be age 40.
However, if you apply for the Term life insurance today, your agent should help you select the back date option to preserve your current age 39.
If your application were approved, you would be paying the age 39 premium going forward, the cost is you would need to pay 6 months' age 39 premium back to 6/30 last year.
If you don't choose this option, you will be paying the age 40 premium going forward.
In most of times, paying a little extra now can you big later!