Traditionally, life insurance becomes effective after the policy has been issued, you have paid the first premium with a check, and signed and returned the delivery paperwork. However, there are some variations on that. E.g. If you have applied for a No Exam policy over the phone or internet, your policy may go into effect as soon as they draft the first premium. In a nutshell, life insurance coverage is effective when you have been approved, everything has been received by the insurance company to put it in place, and they have acknowledged it as being in effect.
For small amounts a temporary binding agreement with a required deposit can cover you while the underwriting process is taking place. But most life insurance policies are put in force at the date of issue with the required agreed premium with binds the coverage. It’s important to sign and keep a copy of the delivery statement with your policy, store it in a safe place and notify one of the beneficiaries of it’s location.
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Permanent or term coverage as provided by the policy when issued is effective at that time. In many if not all cases, there is a "free look" period offered usualy for a period of 10 days in which time you may decide that you do not want the coverage. If returnmed to the company, any premium you had paid would be refunded to you.
Many policies offer a "temporaty Insurance provision" which sates that once the application has been signed and the appropriate premium paid, the company grants that you are covered for a certain amount of benefit during the underwriting period. Check with your Insurance Professional aboiut how much tempoorary coverage you may be entitled to receive after submitting your application.
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Many policies offer a "temporaty Insurance provision" which sates that once the application has been signed and the appropriate premium paid, the company grants that you are covered for a certain amount of benefit during the underwriting period. Check with your Insurance Professional aboiut how much tempoorary coverage you may be entitled to receive after submitting your application.