What type of coverage does T have after paying the initial premium and receiving a receipt?

When T pays the initial premium and receives a receipt, they obtain conditional coverage. This means that T is covered under certain conditions that must be met for the coverage to remain effective. Typically, this coverage is contingent upon the insurer’s approval of the application and any other stipulated requirements outlined in the receipt, such as the applicant being in good health at the time of application.

If T were to pass away or experience a claim prior to the underwriting process and the fulfillment of these conditions, benefits may not be paid out. Therefore, while T enjoys a certain level of protection immediately after payment, that protection is not absolute until all underwriting requirements are satisfied. This highlights the importance of understanding the nuances of life insurance policies and the coverage they provide through initial premium payments.