When Does Life Insurance Policy Take Effect? 
If you apply for life insurance without submitting an initial premium , that is referred to as applying `` COD '' -LRB- cash on delivery -RRB- . 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 . 