What is the free-look period in a Variable Life Insurance policy?

The free-look period in a Variable Life Insurance policy refers to a specified timeframe during which a policyholder can review their policy after purchase and choose to cancel it for a full refund of premiums paid. This period typically ranges from 10 to 30 days, depending on state regulations. It serves as a consumer protection mechanism, allowing individuals to thoroughly evaluate the terms and conditions of the policy without the risk of financial loss if they decide it does not meet their needs.

This is particularly important in variable life insurance, where policy values can fluctuate based on the performance of chosen investments, which may require a level of understanding and comfort from the policyholder. The free-look period enables customers to reassess whether the product aligns with their financial goals and risk tolerance before making a long-term commitment.