Understanding Your Annuity Free-Look Period: A State-by-State Guide

Annuities can be a valuable component of a long-term financial strategy, offering a stream of income, often for retirement. However, before fully committing to an annuity contract, consumers are granted a “free-look period.” This is an important window of time during which you can review the terms of the annuity and cancel the contract without penalty if you decide it’s not the right fit for your financial goals. The length of this period, and sometimes the conditions under which it’s granted, can vary significantly from state to state.

Standard Free-Look Durations:

A common free-look period offered by many states is 10 days. This includes states such as Alaska, Arkansas, Connecticut, Georgia, Illinois, Indiana, Iowa, Kansas, Louisiana, Maryland, Michigan, Missouri, South Dakota, Tennessee, and Washington.

Several other states also mandate a 10-day period, but with specific nuances. For example, in Delaware, it’s 10 days for a new policy, extending to 20 days for a replacement policy. Minnesota follows a similar pattern with 10 days for new policies and 30 days for replacements. Pennsylvania also has a 10-day period for new policies, increasing to 20 days for replacements. Utah offers 10 days for new policies and 30 for replacements. In South Carolina, the standard is 10 days, but this extends to 30 days if the annuity is sold via mail order. Virginia provides a 10-day free look specifically for replacement contracts, with no legal requirement explicitly stated for new contracts in the provided data.

Extended Free-Look Periods:

Some states offer consumers a longer window to review their annuity contracts. California and Wisconsin (for replacement policies) lead with a generous 30-day free-look period.

A 20-day period is provided in Idaho, Massachusetts, and Rhode Island. Texas also offers 20 days for new policies, extending it to 30 days for replacement policies.

Florida provides a 21-day free look period.

15-Day Free-Look Periods and Conditional Requirements:

Several states have a 15-day free-look period. Interestingly, in a number of these states, this period is specifically tied to the insurer’s provision of an annuity buyer’s guide and disclosure document at or before the time of application. If the insurer fails to provide these documents as required, the 15-day free-look period is granted. This condition applies in Alabama, Colorado, Hawaii, Kentucky, Maine, Montana, Oklahoma, and West Virginia, and Wyoming.

Oregon offers a more variable period, ranging from 10 to 15 days for a new policy, contingent on when the annuity buyer’s guide and disclosure document is provided. For replacement policies, Oregon mandates a 30-day period.

States with Specific Considerations:

• Arizona: Provides a 10-day free look, which extends to 30 days if the buyer is 65 years of age or older.
• Mississippi and Vermont: According to the data, these states have no legal requirement for an annuity free-look period.

Why the Free-Look Period Matters:

The free-look period is a critical consumer protection. Annuity contracts can be complex, and this window allows you to:

• Thoroughly review all terms, conditions, fees, and surrender charges.
• Seek advice from a trusted financial advisor.
• Compare the annuity with other financial products.
• Ensure the annuity aligns with your risk tolerance and long-term financial objectives.

If, during the free-look period, you decide the annuity is not suitable, you can typically return the contract to the insurer and receive a full refund of any premiums paid.

Always ensure you receive and review all necessary documentation from your insurer, and don’t hesitate to use the free-look period to its full advantage to confirm that your chosen annuity is the right step for your financial future. It’s advisable to confirm the most current regulations with your state’s Department of Insurance or a qualified financial professional, as laws can change.

Annuity Free-Look Period Minimums by State

Alabama	15 days; if buyer’s guide and disclosure are not provided at or before application.
Alaska	10 days.
Arizona	10 days standard; 30 days if purchaser is 65+.
Arkansas	10 days.
California	30 days.
Colorado	15 days; if buyer’s guide and disclosure are not provided at or before application.
Connecticut	10 days.
Delaware	10 days for new policies; 20 days for replacements.
Florida	21 days.
Georgia	10 days.
Hawaii	15 days; if buyer’s guide and disclosure are not provided at or before application.
Idaho	20 days.
Illinois	10 days.
Indiana	10 days.
Iowa	10 days.
Kansas	10 days.
Kentucky	15 days; if buyer’s guide and disclosure are not provided at or before application.
Louisiana	10 days.
Maine	15 days; if buyer’s guide and disclosure are not provided at or before application.
Maryland	10 days.
Massachusetts	20 days.
Michigan	10 days.
Minnesota	10 days for new policies; 30 days for replacements.
Mississippi	No legal requirement.
Missouri	10 days.
Montana	15 days; if buyer’s guide and disclosure are not provided at or before application.
Nebraska	10 days.
Nevada	10 days for new policies; 30 days for replacements.
New Hampshire	15 days; if buyer’s guide and disclosure are not provided at or before application.
New Jersey	10 days.
New Mexico	15 days; if buyer’s guide and disclosure are not provided at or before application.
New York	10 to 30 days.
North Carolina	10 days for new policies; 30 days for replacements.
North Dakota	10 days.
Ohio	15 days; if buyer’s guide and disclosure are not provided at or before application.
Oklahoma	15 days; if buyer’s guide and disclosure are not provided at or before application.
Oregon	10–15 days for new policies (depending on disclosures); 30 days for replacements.
Pennsylvania	10 days for new policies; 20 days for replacements.
Rhode Island	20 days.
South Carolina	10 days; 30 days if sold by mail order.
South Dakota	10 days.
Tennessee	10 days.
Texas	20 days for new policies; 30 days for replacements.
Utah	10 days for new policies; 30 days for replacements.
Vermont	No legal requirement.
Virginia	No requirement for new contracts; 10 days for replacements.
Washington	10 days.
West Virginia	15 days; if buyer’s guide and disclosure are not provided at or before application.
Wisconsin	30 days for replacements.
Wyoming	15 days; if buyer’s guide and disclosure are not provided at or before application.