The sudden death of a loved one is hard to deal with. This can only be compounded by your loved one not having a life insurance policy. What if the death occurs after the underwriting of the policy but before the policy is delivered. This is where a conditional receipt can come into play.

What is a Conditional Receipt payment?

When a life insurance policy is taken out the insurer will ask if you want to make a payment up front. This is typically done before any health investigation or interviews take place. This payment is a conditional payment which essentially says that if you are accepted by the policy grantor the policy is immediately in effect. What this also means is that if death occurs between the acceptance and the policy coming into full effect, the family is still covered and the policy will be paid off.

Not Paying the Conditional Payment

While it may seem like you are paying for something you may not get, in the rare instance that a death occurs in this narrow time frame then the policy will not pay out. Having no insurance to cover costs of the death of a loved one can make a horrible situation even worse.

Make sure that when you take out a policy, you pay the conditional payment just in case.

If you have legal issues with an insurance policy or company contact the elder law experts at Stano Law group.