With backdating

13-Aug-2016 14:04

If the timing works out, we can sometimes backdate your policy and keep your life insurance age of the insured down by one year.

And that one year can make a big difference in the cost of your policy.

Two indictments have been issued and multiple guilty pleas have been entered in the most egregious cases. To a public corporation, the potential consequences of engaging in options backdating are manifold and can range from none whatsoever to having founders and CEOs going to prison. For example, in the case involving Brocade Communications, the SEC charged the former CEO and the former Vice President of Human Resources with criminally violating the securities laws.

In addition to the governmental investigations, more than 200 companies have completed, or are conducting, internal investigations — either because they want the comfort of knowing that they have not engaged in options backdating or they have an inkling that they did and want to be proactive in addressing the problem. In a follow-up study to his earlier work, Professor Lie estimated that 29 percent of 7,774 companies he surveyed backdated option grants to executives between 19. The facts of that case as set forth in the indictment were egregious.

The SEC is investigating many companies, ranging from small to Fortune 500 companies, for options irregularities.

Similarly, the FBI has reported that it has 52 companies under criminal investigation. Department of Justice has said it will bring criminal charges where defendants falsify corporate books and records; issue false financial statements; lie to boards of directors, auditors or the SEC; or file false reports.

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Doing so will result in a net savings of 5 over the term of the policy.

Depending on the circumstances, it may not always be best to backdate a policy.

Our Case Managers work closely with life insurance companies identify backdating opportunities.

For the most part, life insurance premiums increase as you get older.

So having a life insurance age change during underwriting is most likely going to result in a higher final premium when the policy is issued.

Doing so will result in a net savings of 5 over the term of the policy.

Depending on the circumstances, it may not always be best to backdate a policy.

Our Case Managers work closely with life insurance companies identify backdating opportunities.

For the most part, life insurance premiums increase as you get older.

So having a life insurance age change during underwriting is most likely going to result in a higher final premium when the policy is issued.

This resulted in keeping the life insurance age at policy issue at 30, and the cost of the policy the same as the original quote of 0.