What does effective vs original effective date mean?

Why are there two dates for the policy’s effectiveness: the original date and a new one?

My father-in-law passed away, and he missed a payment two months ago. However, he made that payment last month along with payments for the remaining months of the policy, totaling exactly four payments, which matches the number of months left in the policy.

For example, if the policy is normally $10 a month and he missed one payment, his payment history now shows a $40 payment with no upcoming payments due. So, it seems he paid for the rest of the year.

We’re trying to determine if the policy is still valid or if missing the payment reset the effective date. My wife, the beneficiary, called the company, and they said they’re sending a packet but couldn’t provide details over the phone.

Does this mean the policy is still active?

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Sorry to hear about your father-in-law. Here’s the deal with the life insurance dates:

  • Original Effective Date: When coverage began.
  • New Effective Date : Some policies have a grace period (usually 30 days) after missing a payment. Pay within that time and you’re good. Pay later, and coverage might restart on a new date.
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It’s likely the day my father got coverage and when the current segment of coverage started. I’m just speculating here, as this isn’t something people commonly talk about.

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A contract, policy, or other agreement’s effective date is the day it becomes operative. The day something starts is known as the start date. An effective date is usually predetermined, whereas a start date can be more additional hoc. This is the major distinction between the two dates.