Life insurance tip: Send in payment with application

If you’re shopping for life insurance, here’s a good tip: Enclose a check for your premium payment with your application. Your life insurance coverage will then be in force from the day your application is received.

This tip came to me from Brian Ashe at the Life and Health Insurance Foundation for Education.

He explains that if you enclose your premium payment with your application, the insurance company will issue a “conditional receipt” that says if you completed the application, have sent the payment, complete the medical requirements, and are an acceptable standard risk, your death benefits will be in effect prior to the policy being issued.

Ashe says you’ve got nothing to lose!