There is a “free look” period in most states which allows life insurance policyholders to receive a refund on a newly purchased policy. The “free look” period was established to allow life insurance policyholders ample time to review policy details. Usually a refund is available within 10 days of receipt for a new policy and within 20 days of receipt for a replacement policy. If refunded, the policyholder will receive a complete refund of any premiums paid. Be sure to check your state’s policy to see what specific “free look” provisions are applicable in your state.
After the “free look” period has lapsed, policyholders are not guaranteed a refund of premiums already paid. However, the life insurance policyholder can still discontinue the policy by no longer paying premiums when due; this will allow the policy and life insurance coverage to lapse so a new policy can be purchased.