Free Look period in a Life Insurance

Last Updated: Feb 18, 2022 | 8,776 Views
Have you too been a victim of miss-selling? Are you too not satisfied with the inclusions or the exclusions of the terms and conditions of your policy? Are you thinking about canceling the policy and getting a refund? Don’t worry, IRDAI has made provisions for the same under the Free Look period clause.

What is the Free Look period?

A Free Look period is a duration given to a new policy owner to check and review his policy document to confirm that his policy contains each and everything that was stated to him at the time of purchase.

What is the Free Look cancellation?

While assessing the policy document, if a customer finds any discrepancy in the terms and conditions or if he is not satisfied with the features of the policy, he can choose to cancel his policy and get a refund within the free look period. This is known as Free Look cancellation.

Let us understand this better with the help of an example:

Mr. Sharma recently purchased an Endowment Plan from Mr. Manshukh Lal, an Insurance agent residing in his building. As a responsible customer, Mr. Sharma went through all of the terms and conditions of the policy upon receiving the policy document. After reading, Mr. Sharma felt the terms of this policy do not align with his financial goals. Mr. Sharma, being a financially sound person, knew about the Free Look period. The next day, Mr. Sharma filed for the cancellation of his policy and got his refund.

What is the duration of the Free Look period?

You can review and file for a refund within the first 15 days of receiving the Life Insurance policy document or DOC (date of commencement) of your policy. In the case of online sales, Free Look is extended up to 30 days.

Will I get my entire amount?

Unfortunately no. The company will deduct charges for the following:
  • Prorated risk premium that was covered during that period.
  • Taxes.
  • Extra premium/loading or riders (if applicable).
  • Medical examination charges incurred by the company.
  • Stamp duty charges.
  • Administration or processing fee (for some companies).

Do I need to state the reason for canceling my policy?

Yes. After you file for a refund, the company’s executive will get in touch with you and will try to understand and resolve your queries. If you are still unsatisfied with the policy you’ve received, they will issue a refund.

What are the documents required?

You would need the following documents:
  • Request form.
  • Original policy document.
  • FPR (First Premium Receipt).
  • Valid ID proofs.
  • Bank account details.


Many times we see that people often fall prey to miss-selling activities or buy some particular Life Insurance under any wrong influence. So with the help of the Free Look period, you can save your hard-earned money from getting stuck in any unwanted or unsatisfactory insurance product. If you want to buy any insurance instrument, our trained experts at MyInsuranceClub will guide you to make an informed decision aligning with your financial goals. Feel free to reach out.

Abhishek Kumbhar
Abhishek Kumbhar is an Insurance Analyst with rich experience in the Finance Industry. With his extensive knowledge and exposure of the Insurance sector, he writes articles to provide insights about different aspects of Insurance.