If a life insurance application is submitted without the initial premium and the applicant dies, what happens to the policy?

When a life insurance application is submitted without the initial premium, the policy is not in force at the time of the applicant's death. The insurer typically requires the premium payment as part of the application process to activate the policy and provide coverage. Since the applicant did not submit the initial premium, the insurer has not accepted the application and created an effective contract for insurance coverage. Therefore, in the event of the applicant’s death, there is no obligation on the part of the insurer to pay any death benefit because the policy has not taken effect.

This situation emphasizes the importance of prompting applicants to provide necessary payments to ensure coverage begins. Other answers suggest circumstances where coverage would exist or where premiums would affect the payout, which is incorrect without acceptance of the premium.