Glossary

Free-look period

A window after a policy is delivered when the owner can cancel it and get a refund of premiums paid, set by state law and printed on the policy.

Also called: free look, right to examine, cooling-off period

The free-look period is a short window after you receive a new life insurance policy or annuity during which you can return it for a refund. State laws require it, and the length is printed on the policy's cover page. It typically runs 10 to 30 days from delivery, and many states require longer periods for replacement policies and for older buyers, especially of annuities.

To cancel, follow the policy's instructions, usually by returning the policy or sending written notice to the insurer or agent before the deadline. You generally receive all premiums paid; for a variable annuity or variable life policy, some states allow the refund to equal the current account value, which can be more or less than you paid. Hypothetical example: a buyer receives a whole life policy on March 1 with a 20-day free look, realizes the premium strains her budget and mails it back on March 15. The insurer cancels the policy as if it never existed and refunds her premiums.

Use the window to check the application answers, beneficiary designations, rate class and riders against what you were promised. Do not cancel existing coverage until the new policy's free look has passed and you are sure you are keeping it; see replacing a life insurance policy: when it makes sense. More detail is in the free-look period: returning a policy for a refund and the policy delivery: what to check when your policy arrives.

Last reviewed October 4, 2026

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Related terms

Policy replacement Buying a new life policy or annuity while dropping, surrendering or borrowing heavily against an existing one, a sale states regulate closely. Premium The amount a policy owner pays an insurer, monthly, quarterly, yearly or in one sum, to keep life insurance coverage in force. Life insurance application The form a prospective buyer completes with personal, financial and health details that the insurer uses to underwrite and price coverage. Entire contract clause A required policy provision stating that the policy, the attached application and any riders or endorsements are the whole agreement. Surrender charge A fee deducted from a policy's or annuity's value if you cancel or withdraw too much in its early years, usually shrinking each year.

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