When does coverage begin for a life insurance policy if no initial premium is collected?

The correct answer indicates that coverage for a life insurance policy begins at the time the agent delivers the policy and collects the initial premium. This is critical because many life insurance contracts stipulate that the policy is effective only after the premium has been collected and the policy has been formally delivered to the insured.

Generally, the moment of policy delivery along with the first premium payment signifies the acceptance of the risk by the insurer, which is a key component of the insurance contract. Without this step, the policyholder does not officially hold any coverage.

This approach ensures that the insurer has official acknowledgment of the policy and has received the commitment from the policyholder through premium payment, thus activating coverage. The other options may imply that coverage could begin at other points, but they lack the necessary connection between policy delivery and premium collection, which is essential for the commencement of coverage in most life insurance scenarios.