There are many types of life insurance policies to choose from. However, all polices have an effective date. Your coverage is bound and in force at 12:01am on the effective date. It will remain in force until cancelled or the premiums are discontinued. As far as group life insurance, those policies end at the termination of employment. Unlike health insurance there is no provision to continue coverage unless the employee makes arrangements with HR prior to leaving the job.
Most life insurance goes into effect after you pay the first premium and sign the necessary delivery paperwork.
If you purchase a policy in which the premium is paid with the application, and you fill out a temporary insurance application and agreement (TIAA), your policy could pay the death benefit, even if you died during underwriting. I say "could" because there are some conditions such as face amount limits, time at which coverage begins (some will start upon receipt of the premium; some wait until after the exam is completed), and whether you are able to answer no to a set of health questions. This coverage is temporary, until the company determines whether to approve your application, and at what rate.
Simplified issue policies can go into effect in as little as hours or days.
When I work with clients sometimes a question we have to work through is when the effective date will be. In many cases, this is due to another policy which is going to be replaced if the offer from the company applying with is acceptable. You have the ability to communicate with the company to let them know what date you would like the policy effective. Some companies will make the effective date the day you received the policy, signing the delivery receipt.
Explain your situation to your broker/agent so you can strategize the best options for yourself.
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If you purchase a policy in which the premium is paid with the application, and you fill out a temporary insurance application and agreement (TIAA), your policy could pay the death benefit, even if you died during underwriting. I say "could" because there are some conditions such as face amount limits, time at which coverage begins (some will start upon receipt of the premium; some wait until after the exam is completed), and whether you are able to answer no to a set of health questions. This coverage is temporary, until the company determines whether to approve your application, and at what rate.
Simplified issue policies can go into effect in as little as hours or days.
Explain your situation to your broker/agent so you can strategize the best options for yourself.