Know all about the free-look period for insurance

Every policyholder is allowed a free-look period of 15 days to enable him to go through the terms and conditions of the policy and reverse the purchase decision if he finds it unsuitable. During this period, he can cancel the policy, ask for a change in its features, or shift to another policy.

Time limit

This right can be exercised within 15 days of the receipt of the policy document. The onus of proving the date of receipt of the policy document is on the policyholder.


The request for exercising the freelook option must be made in writing to the insurance company. Many insurers prescribe a free-look request form, which can be downloaded from the company's website.


The policyholder needs to provide details like date of receipt of policy document, agent information and reason for cancellation/change. The address and bank details must be provided for refund of premium. A revenue stamp

of `1 should be affixed on the form and signed by the policyholder.


The original policy document, along with the first premium receipt, an indemnity bond, if the original policy document is not available, and a cancelled cheque must be submitted with the form.

Premium refund

The premium refund is adjusted for the following:

- Proportionate risk premium for the period on cover.

- Expenses incurred by the insurer on medical examination. - Stamp duty charges.

Points to note

- In case of a free-look cancellation of a Ulip, the refund payment will be subject to the net asset value (NAV) fluctuations.

- The free-look period applies only to life and health insurance policies that are for a term of at least three years.

(The content on this page is courtesy Centre for Investment Education and Learning (CIEL). Contributions by Sunita Abraham, Girija Gadre and Arti Bhargava.)

Category: Free Insurance

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