Question

What does the "free look" on a Life policy that is part of a replacement sale signify?

a. A chance to reconsider the purchase without penalty.
b. A promotional period with reduced premiums.
c. A warranty for a specific duration.
d. A grace period for premium payment.

Answer 1

The 'free look' on a Life policy that is part of a replacement sale signifies a chance to reconsider the purchase without penalty, usually within a specific duration.

Step-by-step explanation:

The 'free look' on a Life policy that is part of a replacement sale signifies a chance to reconsider the purchase without penalty.

During the free look period, the policyholder has the opportunity to review the policy and if unsatisfied, can cancel it and receive a full refund of premiums paid.

This period is usually a specific duration, typically ranging from 10 to 30 days.