You can return clothes that don’t fit. But did you know you can also “return” or cancel your life insurance policy if it doesn’t meet your needs?
That’s right. After you sign up for a new life insurance policy, keep in mind, it’s not necessarily set in stone. For most policies, there’s a free look period during which you can evaluate your policy, ask questions, and end your policy early without facing extra charges.
Are you familiar with the free look period? If not, you’ve come to the right place. Here, we’ll talk about what the free look period is and how it can benefit you.
How the free look period came into existence
Back in the 1930s and 1940s, unfortunately, there were some insurance companies who didn’t operate ethically, often pressuring their customers to buy policies too quickly. Thank goodness, this has changed. In response, state governments stepped in and created legislation to protect consumers, including requiring a free look period.
This important legislation gives consumers time (usually anywhere from 10 to 30 days) to review a policy, ask questions, and even cancel insurance early without receiving a penalty. It’s extra time that allows you to make sure you made the right decision for you and your family. After all, your insurer wants to help you feel protected and confident that you made the best choice possible.
An example of the free look period in action
Let’s say Beth purchases a new life insurance policy from a reputable company. The policy gives her a 10-day free look period during which she can evaluate her policy and even reconsider without paying a fine.
Beth receives her policy’s paperwork in the mail, which kicks off her free look period. For the next 10 days, Beth compares costs, asks her financial advisor for his opinion, and researches the benefits of life insurance. After a few days, she realizes the value of her new policy. She determines her insurance can help financially support her family for years if she’s no longer there to provide for them. It can also help ensure they continue to live the same type of lifestyle they’ve grown accustomed to.
What the free look period can do for you
We know purchasing life insurance is a big step, and you may have many questions. Remember, even after you sign your policy’s paperwork, you still have time to reconsider your decision. If you’re still questioning costs and evaluating policies, don’t let that stop you from buying life insurance today.
Remember, a life insurance policy can:
- Help cover the costs of a celebration of life service, burial, and other end of life expenses.
- Allow your loved ones to continue living comfortably in their home.
- Relieve financial stress for day-to-date expenses if you’re no longer there to provide for them.
- Leave a legacy to your loved ones that helps cover the costs of education and much more.
If you’re still wavering on getting a new policy—don’t let your questions prevent you from purchasing insurance now. Your free look period is the perfect time to address any concerns, talk with an insurance professional, and get advice from outside advisors.
Chances are, they’ll recommend buying insurance now to protect your loved ones. Plus, they’ll remind you that your free look period can help you realize the value of life insurance and take a bit of pressure off the buying process too. If you have any questions about the free look period and your policy, talk to one of our insurance professionals today. They’re here to help.
