When Does Life Insurance Policy Take Effect? 
Larry gave a correct answer but I will expand it a bit by explaining that even when the policy takes effect some of them are not full benefit for the first two or three years . Many seniors make the mistake of signing up for a policy that wo n't pay a claim during the first 24-months unless they die of an accident . These policies are usually sold through the mail by companies such as AARP , Mutual of Omaha and others . Most of the people who buy these policies are unaware they could get 1st day full coverage AND a lower rate if they would talk with an agent who could review their health and match them with much better options . Do n't throw your first 24 payments down a hole if you do n't have to . 