Franklin life insurance. What Is the Free Look Period for Life Insurance?

South_agency / Getty Images Free life insurance.

How Do Free Look Periods Work for Life Insurance?

A free look period for life insurance is like a return policy for, say, an appliance or a pair of shoes. It’s designed to protect you in case you want to “return” a life insurance policy for any reason, within a certain amount of time. If you cancel a policy within the allowable free look period, your insurer should refund any premiums you’ve paid without making you pay a surrender charge.

The clock on a free look period starts once you receive your policy. The period normally lasts at least 10 days but could be as long as 30 days, depending on the state laws where you live.

For instance, Texas law requires the free look period to be at least 10 to 20 days. In New York, the period must be 10-30 days. A 30-day period is required in New York for any policy offered by mail.

Income protection

Keep in mind that the free look period for a new life insurance policy might be shorter than it is for a replacement life insurance policy. For instance, a North Carolina policyholder has a minimum 10-day free look period for new coverage and a minimum 20-day free look period for replacement coverage.

An Example of a Free Look Period for Insurance

Let’s say Rasha purchases a $500,000 life insurance policy and then reads through the policy after she receives it. The payments are somewhat high, so she checks in with her financial advisor about whether the policy is a good use of her money.

After the meeting, Rasha realizes she’d rather invest the money that she planned to use for monthly insurance premiums. She’s within her free look period, so Rasha asks her insurance company to cancel her policy and refund any premiums she’s paid

Liability insurance

Free Look Period vs. Grace Period for Life Insurance

Typically, life insurance policies have a free look period as well as a grace period.

The free look period refers to the window of time when you can cancel an insurance policy for any reason and receive a refund of your premiums paid. The grace period refers to a period of time after your premium due date when you can make a late payment without losing your coverage. Most states make insurance companies give you a grace period of around one month.

Frequently Asked Questions (FAQs)

New York State Department of Financial Services. “ Life Insurance.”

Life insurance beneficiary

North Carolina Department of Insurance. “ FAQs About Life Insurance,” Click on “What does “free look” mean?”
Overall rating page: 4.5 / 5 left 1335 people.

Posted by at 07:36PM

Tags: franklin life insurance, which life insurance, get life insurance quote, family plan life insurance policy, company life insurance, american general life insurance, term life insurance online purchase, income protection, life insurance beneficiary, liability insurance


There are no comments for this post "What Is the Free Look Period for Life Insurance?". Be the first to comment...

Add Comment