What is the "Free Look" period for insurance in MN and WI?

Consumers are protected against just about anything pertaining to insurance. Today I will speak a bit about the “Free Look” period that most insurance products offer.

Because over the years that the insurance industry has been in existence, situations have occurred in which consumers have misunderstood things and situations in which insurance agents unfortunately cared more about their commissions over the client and misconstrued things. Many times it is only a matter of communication but complaints are filed so more and more “safeguards” have been set up to protect the consumer. I think you’ll find that most insurance professionals value the time and effort it took to get licensed and do not want to jeopardize losing it or getting a large fine from the state commissioner of insurance, so they are very, very careful to treat consumers well.

The Free Look Period

There are many consumers who really want to be insured and have themselves and their loved ones protected but are truly afraid of speaking with an agent because they think that they may be forced to buy something they don’t want or need. Again, I assure you (if you feel this way) that you needn't feel this way.

Sometimes a client may ask while they are signing up for insurance if they can cancel their insurance. Of course I say, you can cancel your insurance, you can quit your job, you can get a divorce, you can get off the merry go round; you have choices and you can always say “no”. Going into the purchase of insurance with the attitude of cancelling is like going into marriage with the intent to get a divorce someday. But this is the point I want to make about consumers being protected…  many policies offer what is called a “free look” period that starts after the policy is delivered (and/or put in force; when it becomes active) and lasts from 7 to 30 days. If the client wishes not to keep the insurance, all premiums paid are reimbursed. 

I don’t get this “can I cancel” question often because when my clients purchase life insurance or any other, they truly want it and their intent is to keep it. I, like I’m sure most insurance agents, am very busy and do not work with “tire kickers”. Why would any professional work hard and take all of the time to get the best insurance product for the client knowing that the client will not keep the business on the books? Sometimes I will ask the client more questions about why they are having apprehension; sometimes they just need to know more and have their questions answered. Time is the only thing that cannot be replaced and if someone is not serious about being a client, I have to move on and work with someone who is.

CAUTION: Not everyone qualifies for life insurance.

You may qualify for insurance today (at the time of application), and literally have something happen to you the very next day that could disqualify you, perhaps for a lower premium, or make you ineligible for the insurance all together. (I’m not talking about “healthcare insurance” here;that pays the doctors and other healthcare professionals; I’m referring to insurance products that pay you or your beneficiaries).

TO MY READER: 

Since I have nothing to gain (because I’m most likely not your insurance adviser) I would encourage everyone reading this to feel safe knowing that if for some reason if you have to cancel coverage, you certainly may by having the free look period provision. But since no one knows what tomorrow may bring, it’s better to “think about it” but to be covered while you think about it. 

I’m writing a book and could use your help.

I am writing a new book and could use help from my FB friends. What questions would you want answered about life and health insurance but don't want to ask an agent because you don't want to buy insurance "right now" so you don't want to meet with an agent? Title of book will be: 10 Things you want to know about Insurance but didn’t want to (set an appointment with an insurance agent) to ask! Leave your comments at: www.terscott.com/contact and I'll email you the published eBook FREE! Thanks.

Terry L Scott

Insurance Agent