When does coverage become effective for an individual who applied for life insurance and received a conditional receipt?

When an individual applies for life insurance and is issued a conditional receipt, the coverage generally becomes effective on the date the conditional receipt is issued, provided that certain conditions specified in the receipt are met. A conditional receipt serves as temporary coverage until the insurer formally approves the application and issues the policy. It typically outlines specific criteria that must be satisfied for the coverage to take effect—most commonly, that the applicant is insurable based on the information provided at the time of the application.

Because of this, if the applicant dies due to a covered risk after receiving the conditional receipt and while the conditions remain satisfied, the insurer would typically pay the death benefit. This emphasizes the importance of the date of issuance of the conditional receipt as the moment when coverage potentially starts, rather than waiting for formal policy delivery or the completion of other steps.