Life & Health Insurance Practice Exam 2026 – Your All-in-One Guide to Exam Success!

For a life insurance policy to take effect, both the payment of the first premium and, if applicable, the completion of the medical exam are required. The payment of the first premium indicates the insured's commitment to the policy and activates the coverage. Without this payment, the policy is not considered in force.

In addition, a medical exam may be necessary, depending on the insurer's underwriting guidelines and the specifics of the policy. If the application stipulates that a medical examination is needed based on the applicant's health or the amount of insurance being sought, this step must also be completed to finalize the approval process for the coverage.

The combination of the initial premium payment and the medical exam—as applicable—ensures that the insurer has the necessary information to underwrite the risk and provides the applicant with the desired life insurance coverage. These requirements help mitigate risk for the insurer and protect the interests of policyholders.