Term life online quote  -   Effective Dates for life insurance

the importance of the life insurance effective dates

life insurance effective date


When exactly does the term life insurance effective begin?


That's a great question with far reaching implications if benefits are triggered while in the application process.

Let's take a look at effective dates and the other potential clauses that are common for life insurance policies.


You can always quote the best term rates side by side here:

Free online term life insurance quote

How the life insurance effective date is determined


To determine the effective date, we need to look at another fancy insurance term called "offer and acceptance".


Keep in mind that the application and policy itself are contracts between you and the life insurance carrier.


With life insurance, offer and acceptance essentially speaks to the fact that both parties agree to the contract.


The applicant confirms his/her agreement by completing the application and submitting an initial premium amount.


The carrier, after completing the life underwriting process, will send formal notice of approval which is the company's agreement to the contractual terms and obligations of the specific life insurance policy.


The "offer" is the applicant's submittal of signed and completed application plus premium.


The "acceptance" occurs when the carrier agrees to the coverage and issues an approval of the terms. The carrier is accepting the applicant's "offer".


How Premium Can Affect Effective Date with Life Insurance


What if the applicant submits the application but not premium?


A common question we hear with insurance is why premium needs to be submitted up front before the carrier makes a decision.


It is precisely due to the offer/acceptance clause of the insurance contract described above.


Without the premium submittal, there is no "offer".


In this case, the carrier makes the offer if it issues a policy and this policy is received by the applicant.


"Acceptance" only occurs when the applicant sends the corresponding premium.


Why is this important in terms of the effective date?


With most carriers, the effective date will not occur until the premium is received and the carrier may request a statement to confirm the applicant is in good health before issuing the policy.


If health changes or an applicant passes away while in underwriting, this difference is critical (understatement).


Due to this, our recommendation is to submit payment up front with the application to avoid such a situation.


It does happen and you would hate to be a few days short on such a big deal as life insurance protection.

The Receipt for life insurance and effective date


A receipt is usually generated when the application/payment is submitted.


Depending on the carrier/plan, this establishes the effective date of the policy.


If a receipt is not given, the effective date may be pushed out to when the policy is issued and delivered to the application.


Delivery in many cases constitutes the effective date of the policy.


This can be manual delivery or in today's world of people purchasing term life insurance policies online, via emailing and/or mailing of documents.


It's important to look at your policy of choice and understand how the carrier establishes effective date.


Run your term life quote here for access to brochures for feel free to call or email us with questions regarding effective dates at 800-710-0455

In some cases, the term life application may ask the carrier to backdate the effective date after approval in order to get a younger age and a resulting better rate.


The effective date also affects the contestability clause (period usually of two years during which the carrier can contest the policy based on missing information or misrepresentation) and the suicide clause (usually two years).


These clauses start counting from the assigned effective date.


Of course we're happy to help you find the best rate and option for YOUR health status:


term life insurance guidance and help


You can run your Online Term Life Insurance Quote to view rates and plans


Again, there is absolutely no cost to you for our services.  Call 800-710-0455 Today!




term life quote online for no medical and standard term life
Call 800-710-0455

Our Help is FREE to You!

Enroll Online in 10 Minutes

transamerica term life insurance
ing term life insurance
prudential life insurance
metlife term life insurance

banner term life insurance and more!

and more
Thousands of Americans

Thousands of Americans

from TR

"No Thank you.  You've been so helpful time and time again!"

from SD

"Thank you SO SO much for all your help.  I have to be honest, this insurance stuff was making me so nervous.  Thank you again for your assurance"

from KV

"Anyway, I hope you got some time off this past week! Thank you again for your help and efforts on my behalf! I was very lucky to find you."

from LM

"Thank you so much!  Very happy with service.  If there is any way I can contact supervisors to let them know about your great service let me know"

from SR

"Yay!  Thank you so much.  YOu guys most definitely made it so much easier!"

from VH

"You are awesome... takes a huge worry off my back, thank you for your kind. thanks for your time and kindness. !!"

from SA

"Wow, I can't thank you guys enough for your help...I couldn't imagine trying to tackle this on my own!"

from RF

"Thank you so much for your marvelous work.  Can't tell you how much I appreciated you taking care of this.  You are simply the best!"

Find out what customers are saying about our services