The free look period of an insurance contract typically lasts for ten or more days. During this period of time, the purchaser may cancel or terminate the contract without being required to pay surrender charges. In fact, during the free look period, the purchaser may even be able to receive a full refund for the contract.

If the contract is refunded, the amount of the refund may be equal to the value of the account at the time of termination. The refund may also be the amount of purchase payments; the total amount refunded depends on the contract terms and the laws applicable in the state where the contract was initiated. Additionally, during the free look period, the insured should ask questions to gain as much insight and understanding of the policy as possible.

Having a thorough understanding will help ensure that the policy and coverage is the right fit. The free look period is also referred to as the free examination period. During this period the purchaser of the contract can not only become knowledgeable of the contract terms but also be sure the terms meet current expectations and needs.

In most cases, the free look period starts on the date the policy is received and commonly lasts for ten days. In some industries, the law requires that the period last for 30 days. The free look period is beneficial for the insured; any company that does not offer the free look period in order for coverage to be reviewed may not be the ideal choice.

It is imperative that you review the policy for an overview of the policy details. The actual life insurance policy is also referred to as the evidence of coverage guide and will give much more detail on the plan specifics and coverage details. Although the details of the policy can be confusing, if any part of the policy is not understood, it is best to receive clarification during the free look period.

Free Look Period

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