5.5.3 Term Insurance for Interim Coverage
This system of coverage is designed to allow the insured immediate coverage and yet defer the actual effective date of the policy (usually 1-11 months), allowing the insured to also defer premium payments.
The insurance company will issue preliminary term insurance coverage with premiums based on the insured's age at the time of application. When the principal policy is issued, premiums will be based on the insured's age at the end of the interim coverage period.
