If you’re considering purchasing an annuity, you may be wondering what the “free look period” is. This is a time frame during which you can cancel your annuity contract and receive a full refund of any premiums you have paid. In this guide, we will discuss how the free look period works and what you need to do to take advantage of it.
What is the free look period for an annuity?
The free look period is a time frame, typically of ten days, during which you can cancel your annuity contract and receive a full refund of any premiums you have paid. This period starts on the date that you receive the policy documents from the insurance company. If you decide to cancel your policy during the free look period, you must notify the insurance company in writing.
How does the free look period work?
If you cancel your annuity contract during the free look period, you will receive a full refund of any premiums you have paid. The insurance company will also void the contract, and you will not be obligated to make any future payments. To take advantage of the free look period, you must notify the insurance company in writing of your decision to cancel the policy.
What are the benefits of the free look period?
The free look period provides consumers with a risk-free way to try out an annuity product. If you’re not satisfied with the annuity for any reason, you can simply cancel the contract and receive a full refund. This period also gives you time to review the policy documents and make sure that you understand all of the terms and conditions before making a final decision.
What should you do if you decide to cancel your annuity during the free look period?
If you decide to cancel your annuity contract during the free look period, you must notify the insurance company in writing. You can typically find the contact information for the customer service department on the insurer’s website. Once you have notified the company of your decision to cancel, they will process your request and issue a refund for any premiums you have paid.
Conclusion
The free look period is a great way to try out an annuity product without any risk. If you’re not satisfied with the annuity, you can simply cancel the contract and receive a full refund of your premiums. Be sure to review the policy documents carefully and understand all of the terms and conditions before making a final decision. If you have any questions, don’t hesitate to contact the customer service department of the insurance company. And remember, you must notify the company in writing if you decide to cancel your policy during the free look period.
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Frequently Asked Questions
How long is the free look period for annuities?
The free look period is typically ten days, but it may vary depending on the state in which you live.
What if I don’t cancel my annuity during the free look period?
If you don’t cancel your annuity contract during the free look period, it will become binding and you will be obligated to make future premium payments.