What type of insurance may involve a refund if returned during the applicable period?

Annuity contracts may involve a refund if returned during the applicable period because they often come with a "free look" provision. This provision allows the policyholder to examine the contract for a specified period, usually ranging from 10 to 30 days, depending on state regulations or the terms of the contract itself. If the policyholder decides to return the annuity within this timeframe, they are entitled to a full refund of the premiums paid.

This feature is intended to protect consumers by giving them the opportunity to review the terms and conditions of their investment before committing long-term. Such provisions are less common in life, disability, and health insurance, which may have specific cancellation and refund terms but do not typically allow for a full refund during a free look period in the same way annuities do.