What type of insurance allows a permanent policy to become effective at a selected future date?

Interim term insurance allows a permanent policy to become effective at a selected future date, serving as temporary coverage until that permanent policy is in force. This type of insurance is particularly advantageous for individuals who want immediate coverage while awaiting the finalized issuance of a more permanent solution. It occupies a unique space in life insurance options by bridging the gap between needing immediate protection and establishing a more long-term policy.

Whole life insurance provides lifelong coverage and builds cash value but does not allow for a future start date; it is effective as soon as it is issued. Similarly, universal life insurance offers flexible premium payments and a cash-value component, also beginning coverage immediately upon issuance. Term life insurance, while providing coverage for a specified period, does not allow policyholders to postpone the start of the policy either. Therefore, interim term insurance uniquely fits the criteria of allowing a permanent policy to become effective later.