After purchasing a new life insurance policy, Ms. Chen, a 45-year-old entrepreneur in Alberta, reviews the policy documents. She realizes the coverage amount is lower than she discussed with her advisor, David. The policy includes a provision allowing her to cancel it without penalty within a specific period after receiving the policy. What is this provision commonly known as?

Question: After purchasing a new life insurance policy, Ms. Chen, a 45-year-old entrepreneur in Alberta, reviews the policy documents. She realizes the coverage amount is lower than she discussed with her advisor, David. The policy includes a provision allowing her to cancel it without penalty within a specific period after receiving the policy. What is this provision commonly known as?

Answer options: ✅ The free-look period

• The incontestability clause
• The grace period
• The reinstatement clause

Correct answer: The free-look period

Explanation: The free-look period, also known as the right of rescission, allows a policyholder to review a new policy for a specified number of days (usually 10 days) after delivery and return it for a full refund if dissatisfied.