Delivery Receipt

What Does Delivery Receipt Mean?

A delivery receipt, in the context of insurance, is a document signed by the policyholder after successfully receiving the insurance policy. It confirms to the insurance company that the policy has been delivered and is in the possession of the customer. The effective date of the policy, and whether coverage has begun, may depend on the type of receipt the policyholder receives. Delivery receipts are most formally used with life insurance, where policies are typically handed or mailed to the buyer once underwriting is complete, so anyone comparing different types of life insurance will usually sign one before coverage becomes permanent.

Insuranceopedia Explains Delivery Receipt

An individual applying for insurance may sometimes receive a conditional receipt, which can grant immediate coverage. However, this coverage is usually temporary, lasting only until the application is either approved or denied, and typically requires a premium payment. Insurers may also issue binders or other documents as temporary proof of coverage until the actual policy is delivered. Once the policy is delivered, the policyholder would then sign the delivery receipt to confirm receipt of the permanent coverage. Signing the delivery receipt also starts the free-look period. This gives the buyer a short window to read through the contract and back out for a full refund if the policy isn’t right. Free-look rules vary between the best life insurance companies, so reviewing the terms before signing makes sense.