Is Life Insurance Effective Immediately? 
Life insurance is a contract between two parties . Both parties must agree to the terms of the contract . The life insurance company has pre-qualifying requirements that the prospective policy owner must satisfy before determining an underwriting offer . After the underwriting offer is presented and accepted by the prospective policy owner and premium is paid , a binding contract has been created . Many life insurance companies offer temporary coverage with a binding premium deposit , but limited to the terms and conditions of each company . 