Temporary Insurance Agreement (TIA)

also called a binding premium receipt or conditional insurance

Since underwriting and issuing a life insurance policy takes time, temporary insurance may be available.

After you (as the applicant) sign an application for life insurance, the insurer starts determining whether they are willing to insure you. During this process, you may be eligible for temporary insurance if:

  • you are likely insurable standard rates (i.e., no rating expected)
  • you have completed the policy application
  • you have made the first premium payment

The temporary insurance agreement is a binding contract between the insurer and the applicant which the agent issues → puts insurer at risk since the policy is not yet approved or issued.

Death Benefit

Should the life insured die during the underwriting process, the insurer pays the death benefit unless the insurer can prove that they would not have issued the policy for which you applied.

There is a maximum death benefit (e.g., $500,000) regardless of how much insurance you are applying for.


The temporary insurance is cancelled if more information is required. If that happens, you are informed in writing and your premium is refunded.


The temporary insurance ends once the final policy is delivered. Since you were protected by the temporary insurance, there is no refund for the charges for this protection.

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