My application for a life policy is still in process. What if something happens to me in this time period? When does a policy come into effect?
Tripti Dwivedi, Lucknow
Normally, a life insurance policy becomes valid on the date the policy is accepted, or the date of receipt of the first premium, whichever is later. But if the acceptance of the proposal depends on the policyholder’s compliance with any requirements, then the policy will become valid on the date when all the requirements are satisfactorily complied with after the receipt of the first premium. Most companies provide temporary conditional cover during the application process if certain conditions are met. This temporary cover is limited in time and amount. The availability, amount and conditions are described in the application and vary from company to company.
