Why does my Life Insurance Policy have a Free Look Period?
One of the great features about term life insurance policies is that many of them come with a 30 day free look period. This means that if you are approved for a life insurance policy, you have 30 days to review it from the day you receive it. This gives you time to review the coverage and read through the policy to determine if what you have applied for truly meets your needs. If you decide to cancel the life insurance policy during that 30 day period any initial premium you paid would be refunded.
Keep this in mind when you are applying for term life insurance. Even if you are not 100 percent sure you will accept a policy, always ask if there is a free look period. For many people, life insurance is something that is brand new to them because they never have had any before or always relied on employer-sponsored life insurance. Knowing that there is a free look period you don’t have to put off applying because you are uncertain the policy is the right choice for you. Once you are approved and receive the policy you still have plenty of time to think about it and decide to keep it or cancel the life insurance policy.
Free look periods may vary from state to state, so always ask when you are applying for term life insurance if there is a free look period and what the length of time is for your particular state. Once you have a life insurance policy in place you can continue to shop around for other policies or see if you find lower rates for the same amount of coverage during the free look period.
Don’t be afraid to apply for life insurance or hesitate thinking you are locked into a policy that you won’t be able to get out of. Use the free look period to dedicate some time to really studying your policy, understanding how the policy works and then put the policy in a safe place where you can easily find it.
About the author: Dan Cody has been in the life insurance business for over 7 years. He loves playing a variety of instruments including the guitar, bass, drums, and piano. He also supports cancer research foundations and volunteers at local pet shelters. Dan enjoys helping customers understand life insurance, so they can find a solid policy that fits their needs. You can reach Dan at 1-800-651-1953 or DCody@Pivot.com.