Free Look Period in Insurance: Rules & Refund
The free-look period lets you cancel a new insurance policy for a refund. How long it lasts (15-30 days), how to cancel, and what refund you get.
What is the free look period in insurance?
The free-look period is a window after you receive a new policy during which you can review the terms and cancel for a refund if you're not satisfied. IRDAI mandates it on all life and health insurance policies – 15 days for most, and 30 days for policies sold electronically or through distance marketing.
How Free-Look Period Works
The clock starts from the date you receive the policy document, not the date you bought it. To exercise it, send a written cancellation request to the insurer within the window, stating your reason.
On cancellation, the insurer refunds your premium minus a few small deductions: proportionate risk-cover charges for the days you were covered, stamp duty, and any medical examination costs.
Example
You buy a health policy and, eight days after receiving it, find a plan with better terms. You cancel within the free-look period and receive your premium back, less a small proportionate deduction for the days you were covered.
Why Free-Look Period Matters
The free-look period is your safety net against mis-selling and rushed decisions. Always read the full policy wording – exclusions, waiting periods, sub-limits – inside this window, while you can still walk away. If something was mis-sold, this is your cleanest exit.
Common Mistakes to Avoid
- Measuring from the wrong date. The window runs from the day you receive the policy document, not the day you paid. Keep the delivery proof – a courier slip or the policy-issued email – so the start date is not in dispute.
- Cancelling verbally. A phone call does not stop the clock. Send a written request (email or letter) within the window, state the reason, and keep the acknowledgement.
- Not actually reading the wording. The free-look period exists so you can check the exclusions, waiting periods and sub-limits against what you were told at sale. Skipping that read defeats the entire purpose of the window.
- Expecting a 100% refund. The refund is your premium minus proportionate risk-cover charges for the days you were covered, stamp duty, and any medical-test cost. It is near-full, not full.
Frequently Asked Questions
How long is the free-look period?
15 days from receiving the policy for most life and health policies, and 30 days for policies sold electronically or via distance marketing, per IRDAI rules.
Will I get a full refund in the free-look period?
Almost full – the insurer deducts only proportionate risk-cover charges for the days you were covered, stamp duty, and any medical-test costs. The rest of the premium is refunded.
How do I cancel during the free-look period?
Send a written cancellation request to the insurer within the free-look window, stating your reason, along with the policy document. Keep the acknowledgement.
Does using the free-look period affect any future policy?
No. Exercising the free-look period is a clean cancellation of a policy you never really began – it leaves no mark and does not affect your ability to buy from the same or another insurer later. It is a right, not a black mark.
Can I use the free-look period after making a claim?
No. The free-look period is for reviewing a policy you have not used. Once you raise a claim you have drawn on the cover, so the clean-exit refund no longer applies. Decide within the window, before any claim.
Related guides:
Glossary: Full Insurance Terms Glossary
Disclaimer: Educational content reflecting 2026 rules. Always read your policy wording. NYVO is an IRDAI-registered corporate agent.
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16+ years in financial services. Former investment banker at Bank of America, Kotak Investment Banking, and SBICaps, and ex-CFO of slice. Founder of NYVO and Principal Officer - IRDAI Certified.
