When does coverage become effective for a life insurance policy issued after a conditional receipt?

Coverage for a life insurance policy issued after a conditional receipt becomes effective on the date of issuance of the conditional receipt, provided that the applicant meets the underwriting requirements and is otherwise eligible for coverage at that time. A conditional receipt serves as a temporary coverage document, indicating that the insurance company will provide coverage as long as certain conditions are met, typically including the payment of the first premium and the applicant being in good health.

This means that if the specified conditions are satisfied, the policyholder can rely on the coverage from the moment the conditional receipt is issued. It is crucial to understand this mechanism as it allows applicants to have insurance protection while their application is still under review, rather than having to wait for the policy to be formally issued and delivered.