Policy delivery: what to check when your policy arrives

When your life insurance policy arrives, compare it line by line with what you applied for before you sign the delivery receipt and before the free-look window closes. Check the people, the dates, the amount, the price and class, the riders and the beneficiaries. An error caught in the first days is a quick correction; an error found at a claim can be a dispute.

Delivery is also the moment coverage usually starts, so the paperwork you sign here matters. If you want the background on what happened before delivery, see the life insurance application process and timeline.

First, understand what you are signing

The agent or insurer may ask you to sign a delivery receipt and sometimes a statement that your health has not changed since the application. The receipt records the date you received the policy, which usually starts the free-look period. A health statement is the insurer's way of confirming it still has accurate information; if something has changed, such as a new diagnosis or a medication, tell the agent before signing, because an inaccurate statement can create problems during the the two-year contestability period.

Do not sign before you have read the policy. If the insurer delivers by mail and the receipt arrives separately, you can take the time to review, but note the free-look deadline from the date on the receipt or mailing.

The checklist

Compare each item with your application, the quote and any illustration.

The people

• Insured: legal name spelled correctly, date of birth, sex and state of residence correct. An error in birth date can change premiums or the age used for coverage. See age nearest vs last birthday: why your insurance age rounds up and the misstatement of age provision in the policy.
• Owner: the person or entity you intended. Ownership affects who controls changes and, for large policies, estate taxes (see policy owner vs insured: why it matters).
• Beneficiaries: primary and contingent beneficiaries match your instructions in names and shares. If a trust or minor is named, confirm the exact wording (see how to choose a life insurance beneficiary).

The coverage

• Product and type: term, whole life or universal life, as you agreed.
• Face amount: the death benefit equals what you applied for. For universal life, check the death benefit option (see Universal life death benefit options A and B).
• Term length and expiration: the level-premium period and the date coverage ends, if any.
• Conversion and renewal rights: if you bought term, confirm the conversion deadline (see converting term life to permanent: how the conversion option works).
• Policy date and issue date: the policy date sets premium due dates and the start of the incontestability period. If it was backdated, check that you understand the effect (see backdating a life insurance policy to save age).

The price

• Rate class: the policy or its data page shows the class. A tobacco or substandard class when you applied as a nonsmoker is a red flag; ask why (see life insurance rate classes: preferred plus to substandard).
• Premium and mode: the amount, payment frequency and due dates. Monthly payments usually cost more over a year than annual payments (see paying life insurance monthly vs annually).
• Guaranteed vs non-guaranteed premiums: for term, the level premium period; for permanent policies, see if premiums are fixed.
• Payment method: if you set up automatic draft, confirm the date and account.

Riders and endorsements

• Every rider you asked for is listed, and nothing extra is added. Riders can carry separate charges.
• Any endorsement or amendment attached to the policy is explained. An endorsement can add an exclusion or a rating. If the policy was issued on different terms from the application, ask in writing why, and read it carefully before accepting.
• The application is attached or referenced. Under the entire contract clause, the policy plus the application is the whole contract, so a copy of the application you signed should be included. Read it for mistakes.

The paperwork

• Buyer's Guide and policy summary. Insurers must deliver a buyer's guide and, for policies not sold with an illustration, a policy summary, under rules based on the NAIC Life Insurance Disclosure Model Regulation (#580). Check they are included.
• Illustration. For a permanent policy sold with an illustration, the signed copy on file should match the policy. If it was issued differently from what you applied for, a revised illustration should be provided (see how to read a life insurance illustration).
• Contact information: the insurer's service number, claims address and website for later.

Fix errors now

If something is wrong:

1. Do not sign the receipt until you have written confirmation that the error will be corrected, or sign it with a note that you are disputing the item.
2. Tell the agent and the insurer in writing, identify the page and the item, and ask for a corrected policy or an endorsement.
3. Do not cancel existing coverage until the corrected policy is in force.
4. Keep a copy of the exchange.

Use the free-look period

Most states give a free-look window after delivery, during which you can return the policy for a refund of premiums. The ordinary window is commonly 10 days; some states, and older buyers or replacement purchases in some of them, get longer. California requires at least 30 days for buyers 60 and older, for example. See the free-look period: returning a policy for a refund and your state's guide, such as California. Make your decision before the deadline, and if you cancel, do it in writing and keep proof of delivery.

After the review

Sign the receipt when you are satisfied, then:

• Put the policy, application copy and receipts in a safe place (see where to keep your policy and who to tell about it).
• Tell your beneficiary and your executor where they are.
• Put the contestability anniversary and premium due dates in your calendar.
• Add the policy to your annual life insurance policy review checklist schedule.

Key takeaways

• Compare the delivered policy against your application: names, birth date, amount, class, premium, riders and beneficiaries.
• Do not sign the delivery receipt or health statement until you have read the policy and disclosed any changes in health.
• Report errors in writing and keep your old coverage until the corrected policy is in force.
• The free-look period usually starts at delivery; check your state's length.
• Store the full policy package and tell your beneficiary where it is.