Multiple choice

A period where a new insurance policy owner is able to terminate the contract without penalties such as surrender charges is known as

  1. free-look period

  2. first charge period

  3. initial settlement period

  4. free-start up period

Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

A free-look period is a period where a new insurance policy owner is able to terminate the contract without penalties such as surrender charges. A free-look period often lasts for 10 or more days (depending on the insurer), allowing the contract holder to decide whether or not to keep it; if he or she is not satisfied, the contract purchaser can receive a full refund for it.