If a Medicare supplement policy is returned within the specified period, what happens to the premium?

When a Medicare supplement policy is returned within the specified free look period, a full refund of the premium is typically issued. This provision is designed to protect consumers by allowing them a certain timeframe—usually 30 days—to evaluate the policy and decide whether it meets their needs. If they choose to return it within this period, they are entitled to a complete refund of all premiums paid.

This full refund policy helps to ensure that individuals can make informed decisions without the risk of losing money, thus fostering trust in the Medicare supplement insurance market. Such features are standard across many states, although the specific terms can vary slightly depending on state regulations. In contrast, other options would not align with the consumer protection intent behind the free look period, as half refunds or credits towards future premiums do not fully acknowledge the importance of complete consumer satisfaction.