Free Look Period
Candlefocus EditorThe Free Look Period is designed to make sure those needs are met. It is an essential aspect of the life insurance policy to which a consumer needs to pay close attention. This window is a limited period of time — usually without a defined fee — in which consumers can assess the policy they just purchased and make necessary changes or terminate the policy without fees or penalties.
Under the terms of life insurance products, the Free Look Period grants the buyer a window (typically 10 days or more) to review the policy details, talk to their family and other advisers, ensure that all the provisions of the policy meet their expectations, and make something changes if necessary. This period is critical, because after the window closes, any changes a policyholder tries to make or cancel the policy, he or she may have to incur penalty fees.
For instance, if policyholders are not happy with any of the restrictions or limitations included in the details of the policy, they can cancel the policy within the free look period and receive the money they put in. The exact details of the free look period may vary by insurer, so it is important to read through the policy documents carefully and ask questions to be fully informed.
Insurers cannot force a potential policyholder to accept the terms of their policy during the Free Look Period; they are allowed to cancel the policy without explanation or fees within the designated timeframe.
The Free Look Period is an important consumer protection that should not be overlooked. That window of time is designed to protect consumers who buy life insurance and later find out that the policy does not meet their needs. With the knowledge that the policy can be cancelled and the money refunded if it does not meet those requirements, the policyholder gains added peace of mind.