How to cancel Life Insurance during the free look period and get a refund?

You can ask to cancel an eligible Life Insurance within 30 days of receiving the policy document. Send a clear request to the insurer, keep proof of submission, and ask for a written refund calculation. You should receive the premium back after only the deductions permitted under the applicable rules and policy terms. The clock starts when you receive the policy document, not simply when you pay the premium.

When does the free look period start?

The 30-day review period starts on the date you receive the policy document, whether it arrives in paper or electronic form. Check the delivery email, portal notification or courier record, and save a copy. If the date is disputed, present this evidence with your request. Submit before the period ends rather than waiting until the last evening.

The policy document and customer information sheet should help you identify the benefits, exclusions, premium commitment, surrender terms, and contact details. Read those terms against what you understood at purchase. If the policy is unsuitable, you do not need to continue paying premiums merely because the document has already been issued.

How do you submit a cancellation request?

Write to the insurer through an official servicing channel and state that you are exercising your free look cancellation right. Include the policy number, name, contact information, date you received the document, and a request for cancellation and a refund breakdown. Ask for an acknowledgement or service request number. Follow any identity and bank verification requirements the insurer communicates.

• Locate the policy schedule, receipt or delivery message, and note the date you received the document.
• Read the free look clause and check whether the terms differ from your needs or the sales explanation.
• Submit the insurer’s form or a written request through its official email, portal, or branch before the deadline.
• Attach documents requested for identity and bank verification. Retain copies and the submission timestamp.
• Track the acknowledgement, refund calculation, and credit. Escalate if the request is not processed on time.

For an ABSLI Policy, use the official customer servicing route shown on the policy or website. The published customer care details include care.lifeinsurance@adityabirlacapital.com and 1800-270-7000. Confirm the current channel on the insurer’s site before sending sensitive documents.

Will you get every rupee of premium back?

Usually, no. A valid free look cancellation entitles you to a refund after limited permissible deductions. These may include the proportionate risk premium for the period the insurer provided cover, any medical examination expense it incurred, and stamp duty. Ask the insurer to show each amount separately. Do not assume a generic administration charge is automatically deductible.

For example, if a policy was at risk for several days, the insurer may retain the risk premium attributable to that period. The actual figure depends on the policy and coverage dates. There is no reliable universal percentage. For a Unit-Linked Policy, the value of units may also be determined at the relevant repurchase or NAV basis under the regulatory and contract terms. Check the policy’s free look clause before estimating a refund.

How long should the refund take?

The insurer should process free look cancellation and refund within seven days of receiving the request under the IRDAI service timeline. Keep the reference number and monitor your Bank Account. If details or documents are missing, respond promptly, and preserve the correspondence. Ask for a written explanation of any deduction or delay.

What should you check before giving up the cover?

Cancellation ends the protection provided by that policy. Check whether your family still needs the cover and whether another policy is already in force. If you intend to replace it, review the new insurer’s underwriting decision, and commencement of cover before relying on it. Age and health changes can affect a new application, and a fresh policy can have different exclusions and premiums.

These are planning considerations, not reasons to retain unsuitable cover. If a sales explanation differs from your issued terms, record the discrepancy in your request, and attach any illustration or communication you have. Free look cancellation is a policyholder right. A separate complaint about possible misselling may be appropriate if the facts support it.

What can you do if the insurer rejects or delays the request?

First, ask the insurer for a written decision, the date it treats as policy receipt, and its reasons for any deduction or rejection. Escalate through its grievance redressal officer if needed. If the issue remains unresolved, use IRDAI’s Bima Bharosa grievance channel or the Insurance Ombudsman route where eligible. Keep the policy, request, delivery proof, acknowledgement, refund computation, and correspondence together.

Also read

What is the free look period and how does it work?

Is surrendering life insurance a mistake?

How can you find a lost life insurance policy?

References

[1] IRDAI, Protection of Policyholders’ Interests, Operations and Allied Matters of Insurers Regulations, 2024: https://irdai.gov.in/web/guest/consolidated-gazette-notified-regulations

[2] IRDAI, Master Circular on Protection of Policyholders’ Interests, 5 September 2024: https://irdai.gov.in/circulars

[3] ABSLI live article and corporate footer, accessed 23 September 2026: https://lifeinsurance.adityabirlacapital.com/articles/life-insurance/cancel-life-insurance-policy-during-free-look-period-get-refund/

[4] IRDAI Bima Bharosa: https://bimabharosa.irdai.gov.in/