When does the free look period begin on a life insurance policy?

When does the free look period begin on a life insurance policy?

• A. When the application is submitted
• B. When the policy is issued
• C. When the premium is paid
• D. When the policy is delivered to the insured

Answer: (D)

The free look period on a life insurance policy begins when the policy is delivered to the insured. This period allows the policyholder to review the terms and conditions of the policy and to cancel it without penalty if they choose to do so. Typically, the duration of the free look period is specified by state insurance regulations and can vary, often lasting anywhere from 10 to 30 days. This is an important consumer protection feature, as it provides policyholders the opportunity to reconsider their decision and ensures that they have a clear understanding of what they are purchasing. During the free look period, the coverage is in effect, and the premium payment is pulled from the policyholder once they opt to keep the insurance. This starting point for the free look period emphasizes the importance of the delivery of the policy as the moment the insured begins their evaluation of the coverage options.

The free look period on a life insurance policy begins when the policy is delivered to the insured. This period allows the policyholder to review the terms and conditions of the policy and to cancel it without penalty if they choose to do so. Typically, the duration of the free look period is specified by state insurance regulations and can vary, often lasting anywhere from 10 to 30 days.

This is an important consumer protection feature, as it provides policyholders the opportunity to reconsider their decision and ensures that they have a clear understanding of what they are purchasing. During the free look period, the coverage is in effect, and the premium payment is pulled from the policyholder once they opt to keep the insurance. This starting point for the free look period emphasizes the importance of the delivery of the policy as the moment the insured begins their evaluation of the coverage options.