Free Look Meaning & Definition

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Definition of Free Look

Free look is a privilege offered to purchasers of contractual plans and insurance policies, which will allow the individual to cancel the contract within the free look period, usually 45 days.

Applying "Free Look" to Securities Exams:

Individuals who purchase life insurance policies and contractual plans are allowed to review the plan during the free look period. If during that term the individual wants to cancel the contract they may do so without penalty. Canceling the contract during the free look period will allow the individual to receive a return of all sales charges.