When Does Life Insurance Become Effective? 
A life insurance policy becomes effective when the first premium is paid and the insurance company accepts the application and underwriting approves the application . When all those conditions are met the policy is in force or in effect . If an applicant submits the first premium payment with the application typically a `` conditional receipt '' is given , which as long as there are no further conditions that need to be met after underwriting will make the effective date as of the acceptance of the application and premium payment . 