What limitation is inherent in the coverage provided by a TIA?

The limitation inherent in the coverage provided by a Temporary Insurance Agreement (TIA) is that it is only effective until the main policy decision is made.

A TIA is a form of temporary coverage that insurers provide to applicants while they await underwriting decisions on their permanent life insurance policy. This means that the coverage is in place only for a limited time period, specifically starting from when the applicant submits their application and ending once the insurer decides whether to approve or decline the permanent policy. If the application is ultimately declined or if the applicant decides not to proceed after the assessment, the TIA will become void, highlighting its temporary and transitional nature.

This feature is significant for clients as it allows them to receive some level of coverage while awaiting the finalization of their insurance application, but it does not establish a long-term or binding policy. Understanding this limitation is crucial for both agents and clients when considering life insurance options.