Term Life Insurance Articles
How "free Look" Laws Might Help You Get Out Of A Life Insurance Policy
2009-12-28
When buying a term life insurance policy, it's helpful to know a bit about the various terms contained in your contract as well as the costs of your coverage from the hundreds of insurers out there. Of course, sometimes everyone makes bad decisions, and you might find yourself in a situation where you've bought term life insurance that you're not happy with. Maybe some of the terms are too restrictive, you're worried about the company you bought the policy from, or you've discovered another company that offers you a much better rate. In any case, you may be able to get some help from your state's Free Look laws.
Free Look laws are designed to help consumers who change their mind about a life insurance policy within the first few days of buying the coverage. They allow consumers to back out of a policy and get a full refund, regardless of the reason for their decision. This type of law has been established in dozens of states for dozens of different insurance types, including term life insurance. The amount of time that consumers have to cancel a policy under Free Look laws varies from state to state.
Laws are especially likely to apply in cases where a policy is bought as a replacement. Many states have some form of consumer protection law in place for replacement policies, and the law is on your side if you disagree with a certain term in your contract or if you find a better deal. For instance, if your employer supplied you with a term life insurance policy that ended when you'd quit your job, so you'd looked around and bought another policy independently to keep your coverage, this would be a replacement policy. If you found a better term life insurance quote during your state's Free Look period, there's a high chance that you'd be able to cancel your policy for a full refund.
Free Look laws are administrated by your state's insurance commission, and the state insurance commissioner's office will have more information regarding the nature of the laws and how they operate. You can look up more information regarding your rights when first trying a term life insurance policy on your state's insurance website. Be sure to do as much research as you can when looking for a term life insurance quote, and you'll be more likely to find a great policy with good rates--while the Free Look laws are certainly helpful, your best option is to simply make a single, well decided life insurance choice that provides protection and peace of mind.
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When buying a term life insurance policy, it's helpful to know a bit about the various terms contained in your contract as well as the costs of your coverage from the hundreds of insurers out there. Of course, sometimes everyone makes bad decisions, and you might find yourself in a situation where you've bought term life insurance that you're not happy with. Maybe some of the terms are too restrictive, you're worried about the company you bought the policy from, or you've discovered another company that offers you a much better rate. In any case, you may be able to get some help from your state's Free Look laws.
Free Look laws are designed to help consumers who change their mind about a life insurance policy within the first few days of buying the coverage. They allow consumers to back out of a policy and get a full refund, regardless of the reason for their decision. This type of law has been established in dozens of states for dozens of different insurance types, including term life insurance. The amount of time that consumers have to cancel a policy under Free Look laws varies from state to state.
Laws are especially likely to apply in cases where a policy is bought as a replacement. Many states have some form of consumer protection law in place for replacement policies, and the law is on your side if you disagree with a certain term in your contract or if you find a better deal. For instance, if your employer supplied you with a term life insurance policy that ended when you'd quit your job, so you'd looked around and bought another policy independently to keep your coverage, this would be a replacement policy. If you found a better term life insurance quote during your state's Free Look period, there's a high chance that you'd be able to cancel your policy for a full refund.
Free Look laws are administrated by your state's insurance commission, and the state insurance commissioner's office will have more information regarding the nature of the laws and how they operate. You can look up more information regarding your rights when first trying a term life insurance policy on your state's insurance website. Be sure to do as much research as you can when looking for a term life insurance quote, and you'll be more likely to find a great policy with good rates--while the Free Look laws are certainly helpful, your best option is to simply make a single, well decided life insurance choice that provides protection and peace of mind.
