When does the free-look period in a life insurance policy typically commence?

The correct answer is that the free-look period in a life insurance policy typically commences when the policy is delivered. This period allows the policyholder to review the terms of the policy after they receive it, and it usually lasts for a specified duration, often ranging from 10 to 30 days, depending on state regulations. During this time, the policyholder has the right to cancel the policy if they decide they no longer want it, often receiving a full refund of any premiums paid.

Beginning the free-look period upon delivery of the policy ensures that the policyholder has had the opportunity to thoroughly consider the policy's features, benefits, and any exclusions or limitations before fully committing. This approach protects the consumer's interests, providing them a chance to make an informed decision.

The other options do not reflect the correct starting point for the free-look period. For instance, the free-look does not begin at the time of application or upon policy approval, as these moments occur before the policyholder has had the chance to thoroughly review the actual policy documentation. Similarly, while the free-look period may still apply after the first premium payment has been made, it is not the action of payment that triggers the free-look; rather, it is the delivery of the policy