Conditional receipt is a document given to an applicant when they submit a life insurance application and initial premium, stating that coverage will begin only if certain conditions are met, such as the applicant being found insurable under company rules as of the application or exam date. Unlike a binding receipt, a conditional receipt does not guarantee coverage during underwriting; it merely outlines circumstances under which temporary coverage may exist. The language defines the effective date, coverage limits, and exclusions. Misunderstanding conditional receipt terms can lead to disputes if a death occurs before the underwriting decision is finalized.

Advisors explain conditional receipts when collecting initial premiums, clarifying that coverage is not automatic but contingent on insurability. They emphasize the importance of accurate application answers and timely completion of exams. Carriers train field and new-business staff to avoid overstating interim protection. Claims arising during the conditional period prompt careful legal and underwriting review of whether conditions were satisfied. Understanding conditional receipts helps advisors set realistic expectations about when coverage truly begins and helps avoid promising more interim protection than the carrier provides.