chances decrease that the applicant will accept the issued policy

1. Benefits of collecting premium at time of app

chances decrease that the applicant will accept the issued policy. Also if the applicant waits to pay the premium, he may become uninsurable or may die before the policy takes effect. no contract is inforce

2. Conditional receipt

coverage effective as of the date of application, if the applicant is found to be insurable

3. According to the conditional receipt, if the proposed insured should die before the policy is issued, one of the following will occur.

•The proceeds will be paid to the beneficiary named in the policy if the company would have issued the policy to the proposed insured if he had been living.
•The proceeds will not be paid to the policy's beneficiary if the company would not have issued the policy. Instead, the premium will be returned.

4. Statement of good helth

statement signed by the insured attesting to the insured's continued good health before leaving the policy with the insured. required if premium is not paid at signing

5. unconditional or binding receipt

makes the company liable for the risk from the date of application, regardless of the applicant's insurability. This coverage lasts for a specified time (usually 30 to 60 days) or until the insurer issues the policy

6. Inspection reciept

the proposed insured wants to examine the policy carefully before actually purchasing it. In this situation, the policyowner does not pay the first full premium at the time the application is completed. The policyowner signs an inspection receipt for the policy, examines the policy, and then pays the first full premium.

7. Temporary insurance agreement

agreement provides the applicant with immediate life insurance coverage whether or not the individual is found to be insurable, while the underwriting process is taking place.

8. Amendments

insurer may amend the policy's terms The insurer may, for instance, amend the policy to exclude certain losses or conditions, or it may classify the applicant as a substandard risk for which it will charge a higher premium. Applicant is not obligated to accept amended policy.

9. Personal Delivery

necessary to complete the sale of a life insurance policy, so the best way to ensure delivery is to do it in person.

10. Mailing the policy

policy is considered delivered when it is mailed to or turned over to the policyowner or someone acting on the policyowner's behalf.