Understanding the life insurance "free look" period
When you buy a life insurance policy, you generally have what is called a free look period. During this time, you have the option of canceling your policy without penalty. Depending on the insurance company and the state you reside in, the free look period can be 10-days or even longer.
The free look period is to your benefit, as it gives you some additional time to review your life insurance policy in-depth, and have your agent, company representative, or attorney review your policy's terms and conditions with you. It also allows you to cancel your policy outright with a full refund of payment in most cases.
From the time you, the policy holder, are in receipt of your life insurance policy, the free look period begins. If you decide that you need to cancel the policy, you must notify your agent, or company representative with your request(s).
Because the purchase of a life insurance policy is an important decision for both you and your family, you need to be sure that the policy you receive is going to meet your needs. Take the time to read your new policy carefully, and ask your agent or company representative to explain anything that you don't understand. The free look period is in place so that you can take the time to be certain about your decision and cancel your policy, if desired, without being penalized.
Remember, it's your policy. Take full advantage of the free look provision.
For more information on free look laws in your state, contact your state insurance commissioner.