Free Look Period in Insurance: What It Is & How to Use It Wisely?

24th May 2025, Gaurav Kumar Singh

Mis-selling of insurance policies, especially life insurance, is an ongoing problem, either due to misinformation on the part of the agent or the seller or lack of knowledge on the part of the buyer. Buying insurance is a long-term commitment, but what if you change your mind after purchasing a policy?

That’s where the “free look period” comes in. Introduced by IRDAI (Insurance Regulatory and Development Authority of India), this feature gives policyholders a 15 to 30-day window to review their policy documents and cancel if unsatisfied—without heavy penalties.

What Is the Free Look Period in Insurance?

The free look period is a mandatory cooling-off phase (usually 15-30 days) where you can:

a) Review policy terms & conditions in detail

b) Cancel the policy if it doesn’t meet your expectations

c) Get a refund (minus some charges)

This applies to life insurance, health insurance, and ULIPs but not general insurance (like car or bike insurance).

How Long Is the Free Look Period in India?

Life Insurance: 15 days (from policy receipt)

Health Insurance: 15 days (from policy receipt)

ULIPs (Unit-Linked Insurance Plans): 15-30 days (varies by insurer)

Note: For online purchases, the period starts from the date of policy issuance. For offline policies, it begins when you receive the physical documents.

How to Cancel a Policy in the Free Look Period?

1. Read the Policy Document Carefully – Check coverage, exclusions, and premium terms.

2. Contact Your Insurer – Inform them via email/customer care about cancellation.

3. Submit a Written Request – Some insurers require a signed cancellation form.

4. Return the Policy Documents – If you received physical copies.

5. Await Refund – The insurer will deduct proportionate risk premium + medical test charges (if any).

Will You Get a Full Refund?

Life Insurance/ULIPs: Refund after deducting pro-rated premium + medical test fees.

Health Insurance: Refund minus risk premium + stamp duty charges.

Example: If you paid ₹20,000 for a policy and cancel in 10 days, the insurer may deduct ₹500 (for days of coverage) and refund ₹19,500.

When Should You Use the Free Look Period?

✅ Policy terms are unclear or misleading.

✅ Premium is higher than expected.

✅ Coverage doesn’t match what was promised.

✅ You found a better policy elsewhere.

Common Mistakes to Avoid

❌ Ignoring the deadline – Once the free look period ends, cancellations attract surrender charges.

❌ Not reading the fine print – Some exclusions (pre-existing diseases in health insurance) may only be visible later.

❌ Delaying cancellation request – Insurers may take time to process refunds.

Final Thoughts

The free look period is a valuable consumer right that helps you make informed insurance decisions. Always use this time to verify policy details, compare alternatives, and ensure the plan fits your needs. If something feels off, don’t hesitate to cancel—it’s better than paying for an unsuitable policy for years.

If you found this article valuable, please don’t forget to Like and Subscribe to my blog for more expert insights and updates.