When does coverage become effective if an applicant submits a completed application for life insurance but does not pay the first premium?

When an applicant submits a completed application for life insurance but does not pay the first premium, the coverage typically becomes effective only after the policy is delivered and the premium is paid. This is a standard practice in the insurance industry to ensure that the insurer has received the appropriate payment before the coverage takes effect. It reflects the principle that insurance is a contract based on mutual agreement, with the premium serving as the insurer's consideration.

In this scenario, if coverage were to become effective immediately upon application or underwriting approval without the first premium being paid, it could lead to situations where a policy is active without any financial backing, which undermines the risk-sharing nature of insurance. Therefore, the requirement to wait for both the delivery of the policy and the payment of the first premium serves as a safeguard for the insurance company and ensures that the policyholder is committed to the contract.