IRDAI is the Insurance Regulatory and Development Authority of India. They ...
Each Insurer provides a period within which the customer can get back to him with queries regarding his Life Insurance Policy called Free look Period. And if his queries are not answered satisfactorily or he has been mis sold a Life Insurance Policy or he does not agree with the Terms and conditions as mentioned in the Policy Documents, then he can cancel the policy without any charges or fine. This is called Free look Cancellation.
Thus, once the Life Insurance Policy is issued, you still have an option to cancel it if you do not accept the terms and conditions. However, the cancellation needs to be done within the 15 days of the Freelook Period itself to avail the benefits of Free look Cancellation.
The benefits of Free look Cancellation are:
1. No charges would be charged other than mortality charge for those 15 days and medical charges and stamp duty charges are deducted.
2. It would a hassle-free transaction as Free look Cancellation is a simple process
3. The terms and conditions and deductions of normal cancellation of the Life Insurance Policy would not be applicable for Freelook Cancellation
Thus, once the policy documents reach you by mail, you are required to go though it in details. And if by chance, some fine-prints do not suit your requirement or you have a complaint, then you are most welcome to cancel the policy within 15 days from the date you receive the policy documents at your residence. This is the Freelook Period which is usually mentioned or as stated in the terms and conditions of the policy and any cancellations for misspelling, etc. during this period is called Freelook Cancellation.