1. 710 POINTS
    Larry Tew
    Larry Tew Financial, Raleigh, NC
    If you apply for life insurance without submitting an initial premium, that is referred to as applying "COD" (cash on delivery). The application will be processed and if approved, a policy is issued. Your agent may deliver the policy or you may receive it by mail. At that time, you will make an initial premium either by draft or paper check. Generally, this would start the coverage.

    If you applied "cash with app", the coverage start is governed by the "conditional receipt". This dictates the specifics and conditions for when the coverage begins. Each company's conditional receipt can be a little different, so it would be best to ask the company or agent for specifics.
    Answered on April 4, 2013
  2. 3485 POINTS
    J Scott BurkePRO
    President, Newbury Inc., Evansville, Indiana
    Larry gave a correct answer but I will expand it a bit by explaining that even when the policy takes effect some of them are not full benefit for the first two or three years.

    Many seniors make the mistake of signing up for a policy that won't pay a claim during the first 24-months unless they die of an accident. These policies are usually sold through the mail by companies such as AARP, Mutual of Omaha and others. Most of the people who buy these policies are unaware they could get 1st day full coverage AND a lower rate if they would talk with an agent who could review their health and match them with much better options.

    Don't throw your first 24 payments down a hole if you don't have to.
    Answered on April 5, 2013
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