The 30-day free look period applies to which policies?

• A. All life insurance policies
• B. Replacement policies only
• C. Term policies only
• D. Group policies only

Answer: (B)

A policyholder’s free-look period is the time after delivery to review the contract and return it if it isn’t right, without penalties. The 30-day window is specifically tied to replacing an existing policy. When a new policy is issued to replace another, there’s a greater risk of misrepresentation, unnecessary surrender charges, or lapses if the buyer doesn’t fully understand what they’re giving up or gaining. The extended 30-day period gives time to compare the old policy’s features, benefits, and costs with the new one, ensuring the replacement is truly beneficial. For policies that aren’t replacing anything, the standard, shorter free-look period applies, so the 30-day window doesn’t apply there.