If a prospective insured receives a conditional receipt but dies before the policy is issued, the insurer will evaluate the terms and conditions of the conditional receipt. In general, a conditional receipt is a temporary agreement between the insurer and the prospective insured. It states that if certain conditions are met, such as the applicant passing the medical examination or the underwriting process being completed, the policy will be issued and coverage will be in effect from the date the receipt was issued. In the unfortunate event that the prospective insured dies before the policy is issued, the insurer will typically review the terms of the conditional receipt to determine if the conditions were met. If all the conditions were met. the insurer will usually honor the receipt and pay the death benefit to the beneficiary. However, if the conditions stated in the conditional receipt were not met, the insurer may not be obligated to provide coverage. In this case, the insurer may return any premiums paid by the insured or their beneficiaries. It's important to note that the specific terms and conditions of the conditional receipt may vary depending on the insurance company and the type of policy being applied for. Therefore, it is crucial for the prospective insured and their beneficiaries to carefully review the terms and conditions of the receipt and consult with the insurer for any clarifications or further information.
