The free-look period: your chance to have a good look at your new policy

TomorrowMakers ™

The free-look period: your chance to have a good look at your new policy

16 March 2015
A free-look period is a specified period within which you are allowed to cancel or make changes to a policy.
 
 

Once you have decided to take out a policy it is important that what you buy meets all your needs. All that said it might not always be possible to pre-examine every aspect and carefully weigh every clause that an insurance policy comes with.

It might only be after a policy is issued and policy documents are delivered, that you realize that the terms of the policy do not meet all your requirements and expectations.

This is where a Free-Look period comes handy.

What is a Free-look Period?

A free-look period is a specified period within which you are allowed to cancel or make changes to a policy. Most life and health insurance policies come with a free-look period ranging from 15 to 30 days.

What are the other advantages of the free-look period?

  • Allows you to make changes or corrections to the policy
  • Allows you to modify riders
  • You can seek clarifications on the terms and conditions
  • You can cancel the policy to get a refund
  • You can take steps to safeguards yourself in case of mis selling

Is the Free-look Period applicable to all policies?

The free-look period is applicable only for life insurance policies and health insurance policies having a term of 3 years and above.

Will I get all my money back if I cancel the policy within the free-look period?

By cancelling your policy within the free-look period, you do get most of your premium as a refund. However, expenses towards medical examination, stamp duty, as well as a proportionate risk premium are deducted by the insurance company.

How can I best utilize the free-look Period?

Within the free-look period specified, a policyholder must:

  • Check all the information, including names (life assured, nominee, guardian, etc.), birth dates, address, bank details, etc. for misspellings and errors. Seek corrections in the policy document if required.
  • Read the terms, conditions, and caveats. Ask questions about the clauses you do not understand clearly.
  • Confirm the sum assured, policy term, riders, etc. Ensure that the expected benefits complement your financial goals.
  • Go through the inclusions and exclusions of the policy and discuss the details about the plan with the advisor or insurer.

In case you need to make changes, get those done within the free-look period. Always approach the insurer directly, as this will help save time.

Remember, it is better to do sufficient pre-purchase research about your policy so that there are no hassles like cancellation.

Topic:
 

Quotes of The Day

POLL

 

MOST VIEWED CONTENT

The Importance of Insurance

The Importance of Insurance

You may think you don't need insurance but you do! Read on to find out why

8 reasons to buy insurance online

8 reasons to buy insurance online

8 smart reasons to buy insurance online!

Life insurance types simplified

Life insurance types simplified

Broadly speaking, there are only two types of life insurance policies – ones that offer only a death benefit (Term insurance) and others that offer death + maturity or investment benefit (e.g. Endowment Plans or Unit Liked Insurance Plans).

Understanding how student travel insurance works

Understanding how student travel insurance works

Given the high cost of medical expenses in developed nations, having appropriate insurance cover is a must for students travelling abroad for education and exploration alike.

5 Odd insurance covers you won’t believe exist in India

5 Odd insurance covers you won’t believe exist in India

Do you have a valuable possession you always wanted to insure but weren’t sure if it was possible to do so? After reading about these 5 strange insurances being availed in India, you’ll have your answer.

Common mistakes while purchasing insurance

Common mistakes while purchasing insurance

KS Gopalakrishnan, MD & CEO, Aegon Life Insurance talks on 'What mistakes do consumers commonly make when purchasing Insurance plans'.

6 compelling reasons why you need Home Insurance

6 compelling reasons why you need Home Insurance

A home is more than 4 walls and carefully picked out paint. It’s about security, comfort and love. And home insurance is the best way to mitigate any damage that may be caused to it.

boy

We would love to hear from you!

Question, comment or concern? Our contact form is the best way to get in touch. We will respond to you within 5 working days.

NEWSLETTER