When Does Life Insurance Become Effective?
14231 POINTSview profileTom SheehanAgency Owner, The Thomas G Sheehan Agency, 27 Glen Road Sandy Hook, CT 06482In most cases, when you work with your insurance professional to complete an application for Life Insurance and pay the required first installment, in addition to a receipt, you will also receive a "Temporary Insuring agreement". This provides immediate coverage granted by the insuring company to protect you during the underwriting period. This provides that in the event that you die while the policy is being underwritten, then the insurance company agrees to pay all or at least a portion of the proceeds of the benefit for which you have applied to your beneficiary. Once the policy is issued, the in force policy then replaces the temporary agreement with the full coverage offerd by the policy sof which you applied.Answered on October 30, 2013flag this answer.JPG)
63333 POINTSview profilePeggy MaceMost of the U.S.If you have certain health conditions, purchase certain types of policies, or do not wish to pay the first premium when your application is taken, your policy will go into effect after it is approved. The insurance company will issue it with a few delivery documents to sign, and it goes into effect when those are received along with the payment for the first premium.Answered on October 30, 2013flag this answer
5877 POINTSview profileStan Cox IIInsurance Adviser - Broker, SC Insurance Services, Oahu, HawaiiA life insurance policy becomes effective when the first premium is paid and the insurance company accepts the application and underwriting approves the application. When all those conditions are met the policy is in force or in effect. If an applicant submits the first premium payment with the application typically a "conditional receipt" is given, which as long as there are no further conditions that need to be met after underwriting will make the effective date as of the acceptance of the application and premium payment.Answered on September 7, 2015flag this answer
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