Backdating a policy is permitted primarily to:

Backdating a policy is primarily permitted to lower the premium by attaining a lower age. When an individual backdates a life insurance policy, it allows them to establish an effective date for the policy that is earlier than the application date. This can be beneficial because premiums for life insurance are often calculated based on the insured's age at the time the policy is issued. By backdating the policy to an earlier date when the applicant is younger, the individual can secure a lower premium, resulting in cost savings over the life of the policy.

This practice can be advantageous since insurance underwriting is heavily influenced by age; younger applicants typically face lower mortality risk, which translates into lower premiums. Thus, backdating serves as a strategic decision for applicants looking to optimize their life insurance costs.

Other options focus on aspects that are not the primary motivations for backdating. For instance, while backdating might incidentally affect the policy's contestability period or affect cash values, these are not the main reasons that insured individuals choose to backdate policies. Similarly, increasing the face amount does not align with the core objective of backdating, which is centered around premium adjustments related to age.