Final answer:
The free-look period in a life insurance policy allows policyholders to review and cancel the policy within a specific timeframe without penalties.
Step-by-step explanation:
The free-look period in a life insurance policy refers to a specific time period during which the policyholder can review the policy and decide whether to keep it or cancel it without any penalty. This period typically begins when the policy is issued, and its duration may vary depending on the insurance company and the state regulations. During the free-look period, the policyholder can request changes to the policy, including modifying the coverage amount or surrendering the policy for a refund of premiums paid.