Colorado Life Producer License Practice Test

What is the minimum duration for a typical free look period for life insurance?

1. 5 days

2. 10 days

3. 15 days

4. 30 days

The correct answer is: 15 days

The free look period is a specific duration following the purchase of a life insurance policy during which the policyholder can review the terms and conditions of the policy. If the policyholder decides that they do not want to continue with the policy, they can cancel it without penalty and receive a full refund of any premium paid. In most cases, the minimum duration for the free look period for life insurance policies is typically 10 days, but many states have regulations that extend this period to 15 days. The 15-day duration allows consumers adequate time to understand their policy thoroughly, evaluate their coverage, and make an informed decision. This extended free look period emphasizes consumer protection, ensuring that individuals are not rushed into a decision and can thoughtfully consider their purchase. It's important to note that while some states might offer different free look periods, the common standard is indeed 15 days. Hence, this is the correct answer.