In this column Ted Jenkin writes about his own experience working with a surviving spouse who received no life insurance because her husband died before he was able to accept and pay for a policy that he was setting up. There is a period of time between the date a life insurance policy application is signed, and the date it is approved. A person may submit a first month’s premium with the application; this is called a “conditional receipt.” An applicant should attach a conditional receipt to the life insurance application to make sure that the policy is in effect once is is received.
See Ted Jenkin, A Common and Costly Mistake With Life Insurance, The Wall Street Journal, June 10, 2015.
Special thanks to Jim Hillhouse for bringing this article to my attention.
