Free Look Period

Definition:

The period in which the life insured can choose to terminate the insurance contract is called a free-look period. No surrender charges are applicable, if you cancel the policy during the free look period.

Description:

In common a free look period of 15 days is provided from the date of receipt of the premium under the life insurance policy. The free look period is a provision which allows the life insured to examine the policy and find out conditions that are not satisfactory. If the insured finds an unsatisfactory condition, she/he can apply for policy cancellation. The premium paid will be arranged to refund after deducting the policy administration charges.

The insured can request for the policy termination even after the free-look period.

Example:

Asha worked with the air force; though she was not engaged with battles directly, the base camp was at risk. Asha took a term plan for 25 years, but soon she found out that her plan did not cover death due to indulgence in war. Asha requested for the cancellation of the policy contract within the free-look period, and the insurer returned her the premium paid.

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ADV/5/22-23/290