Effective Date

What Does Effective Date Mean?

In the context of insurance, an effective date is the specific date on which an insurance policy goes into effect. Effective dates inform all parties involved when their responsibilities and benefits begin, as insurance coverage does not automatically start upon application approval or policy purchase.

Insuranceopedia Explains Effective Date

For example, if a man purchases a health insurance policy in January, but coverage does not commence until February 1, then February 1 is the effective date. Before this date, the man would be unable to file a claim with his new insurer in the event of a health issue. Instead, he would need to cover the costs himself or rely solely on any other health insurance policies he may have.