If you’re considering purchasing a life insurance policy in Houston, you should know about the free look period. Within this window, you can cancel your coverage and get a complete refund of your premium.
Keep reading to learn more about this period and how it works.
What is the Free Look Period?
The policy contract you sign when purchasing a new life insurance policy will detail the “free look period”. This is the period during which you can change your mind about the coverage and get a full refund of the initial payment you paid. Typically, the time lasts 30 days, although it can be as short as 10 days.
A free look period allows you to cancel a newly purchased insurance coverage without penalty. During the initial “free look” period, policyholders can cancel their life insurance coverage without penalty. As long as you keep paying your monthly or annual rates, you will be covered by your life insurance policy.
How Long Does the Free Look Period Last?
It’s up to the individual state and the life insurance provider to determine how long the free look period is. For life insurance policies, the free look period is mandated by law in every state and is typically around 10 days, while many states demand a longer term. Your contract may have a free look period that is longer than the bare minimum.
Different insurers also have different grace periods for reviewing policies. A policy’s effective date, the day you get your policy documents, or the date your insurance provider delivers you a hard copy or digital copy of your policy are all possible beginning points. If you are unsure of when your free look period begins and finishes, you should either check your policy or contact your insurance provider.
How Does it Work?
An insurance plan is a legally binding contract between the insurer and the policyholder. Policyholders have the right to terminate their coverage and receive a full refund of premium payments within a certain time frame after receiving their policy if they are unhappy with the coverage’s terms and conditions. In this case, your insurance company will determine the time frame.
Buyers have the option of continuing to ask the insurer questions about the policy throughout the “free look” period (also known as the “free examination period”), so they can fully understand the terms of the contract. If a refund is issued, it could be equal to the total amount paid into the account up until the time of cancellation, or it could be based on the number of payments made. The refund amount will depend largely on state law.
A policyholder can evaluate the policy at no cost during the free examination period. This gives you more time to carefully consider a new life insurance coverage. The policyholder may also request a review of the policy by their agent, attorney, or corporate representative. The free look period for a new life insurance policy starts the moment the policy is delivered to the policyholder. If you no longer want the insurance coverage, you must give your agent or company representative notice of cancelation.
Policy Cancellation After Free Look Period Ends
If you decide you no longer want coverage after the initial evaluation period expires, you just need to contact your insurer. One thing to remember is that your premium payments will not be returned to you. Only if you prepay the premiums will an insurance company give you a refund. If you paid your life insurance premiums annually rather than monthly, you’ll get a refund for the months in which you weren’t covered.
Choosing suitable life insurance coverage is crucial in protecting your loved ones financially. During the initial free examination period after purchasing an insurance policy, policyholders can cancel their coverage without penalty. If you want to make an informed selection, it’s important to discuss your choices with a reliable and experienced insurance agent.
Consult a Reliable Life Insurance Company in Houston, TX
Franklin Life & Annuity is here to help if you or your loved one are interested in purchasing life insurance in Houston, Texas. We’re here to guide you if you’re unsure how much coverage you should get, which premiums you should pay, or other information. Over the past two decades, we have established ourselves as one of Houston’s premier life insurance providers. Whether you’re looking for ffamily life insurance Houston Texas or final expense insurance, we have it all.
Contact us today, and we’ll help you get the coverage you need!