What action must be taken to initiate coverage for a life insurance policy?

To initiate coverage for a life insurance policy, the payment of the initial premium is essential. This payment is a crucial step because, without it, the insurer does not have the financial consideration that forms the basis of the insurance contract. The premium represents the policyholder's commitment to the contract and ensures that the insurance coverage begins.

Once the initial premium is received, the insurer can take actions such as issuing the policy and providing coverage in accordance with the terms outlined. Therefore, the payment of the initial premium directly triggers the start of coverage. Other aspects, such as application approval, medical exams, and beneficiary designations, may be necessary for various reasons in the underwriting process but do not, by themselves, initiate the coverage of the policy.