IIAP Ordinary Life Practice Exam 2026 – Complete Preparation Guide

Question: 1 / 400

What is the importance of a free look period in life insurance?

It allows immediate coverage upon purchase

It provides a time frame for policy reassessment

It allows the policyholder to cancel for a refund

The significance of the free look period in life insurance lies in its provision for policyholders to cancel their policy and receive a full refund of the premiums paid if they are dissatisfied with the terms or conditions of the policy. This period typically lasts for a specified number of days (often 10 to 30 days) after the policy is delivered.

This feature plays a vital role in consumer protection, allowing individuals to review the policy details, ensure it meets their needs, and make an informed decision without the pressure of immediate commitment. If they conclude that the policy does not suit their financial situation or coverage needs, they can reassess and opt for an alternative without incurring a financial penalty. Thus, the free look period serves as a safety net for policyholders, reinforcing their rights and enhancing their confidence in their purchase decision.

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It ensures lower premiums for policyholders

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