What is the function of the "free look" period in life insurance?

The "free look" period in life insurance serves an important consumer protection function by allowing policyholders the opportunity to evaluate their new policy after purchasing it. This period typically lasts anywhere from 10 to 30 days, depending on state regulations and the specific terms of the policy. During this time, the policyholder can review the terms and conditions of the insurance contract to ensure that it meets their needs and expectations.

If the policyholder decides that the policy is not suitable, they have the right to return it within the free look period for a full refund of any premiums paid. This feature helps reduce buyer's remorse and ensures that individuals make informed decisions regarding their life insurance coverage. It effectively creates a safety net for consumers, encouraging them to take their time in understanding the implications of the policy they have chosen.