Free Look Period in Life Insurance: How it Works in Insurance?

Written by : Knowledge Centre Team

2026-01-09

4162 Views

8 minutes read

Locate branch

Resume journey

Pay Premium

Live Life More Confidently

Get best insurance from our experts

Name is required Name should be Valid

Mobile Number is required Mobile Number should be Valid

Email is required Email should be Valid

DOB is required DOB should be Valid

Annual Income*

< 3 3-5 5-7 7-10 > 10

Annual Income is required

I agree that even if my contact number is registered with NDNC / NCPR, I would still want the Company to contact me on the given number and email id for the clarifications/product information sought by me and agree that I have read and understood the Privacy Policy and agree to abide by the same.

Please tick to proceed further.

Thank you for your interest in our product. Our financial expert will connect with you shortly to help you choose the best plan.

The world of insurance can be overwhelming, especially with complex policy documents and long-term commitments. To protect consumers from making hasty or uninformed decisions, the Insurance Regulatory and Development Authority of India (IRDAI) has introduced a crucial safeguard known as the Free Look Period. This provision allows new policyholders a dedicated window to thoroughly review all terms, conditions, and benefits of their life insurance policy. If you find any clause to be unclear, unsuitable, or misleading, you have the right to cancel the policy within this period and receive a refund of your premium, excluding minimal charges. Understanding how the free look period works will help you make confident and informed insurance choices.

Key Takeaways

The free look period allows new policyholders to review their life insurance terms risk-free, ensuring the plan suits their needs
You can cancel your policy within 15 - 30 days of receiving the policy document, depending on the insurer and the mode of purchase
If you cancel during the free look period, you’ll get a premium refund minus minimal fees like stamp duty and administrative charges
Cancelling a policy within the free look period does not attract penalties or impact your ability to purchase insurance in the future
Utilising the free look period helps you make confident, well-informed insurance choices, reducing the chances of being locked into an unsuitable long-term contract

What is a Free Look Period in Insurance?

Free look period refers to a specific time or a window within which the policyholders can terminate their life insurance policy. In this period, no penalty fee is applicable for the policyholders. The period lasts for ten days or more. It gives you time to decide whether you want to keep the policy. This period may vary from insurer to insurer.

A free look period is available in life and health insurance policies. Let us consider an example to understand more about the free look period.

Rishabh bought a life insurance policy online. While reading the terms and conditions, he found that the policy does not align with his financial needs.

However, he had already paid the premium. What can he do now? Does he have to keep the policy even if it doesn't fulfil his needs? That is when a free look period comes into play.

Since Rishabh was still within the free look period (usually 15 to 30 days from the date of policy receipt), he contacted the insurance company to cancel the policy. He submitted a written request for cancellation, returned the policy documents, and provided a reason for cancellation. The insurer processed his request and refunded the premium after deducting minimal charges such as stamp duty, medical examination fees (if any), and proportionate risk premium for the number of days the policy was active.

This allowed Rishabh to exit a plan that didn’t meet his expectations, without financial loss. Hence, the free look period gives policyholders like Rishabh a fair chance to review the policy and make an informed decision.

Get the Best Term Insurance Plan for Your Needs

Full Name* Please enter correct name Please enter the Full name

Mobile Number* Please enter valid mobile number Please enter Mobile Number

Email* Please enter valid email Please enter Email

...Read more Consent is required

How Does Free Look Period Work?

Before you commit fully to a life insurance policy, it’s important to know that you’re not locked in immediately. The free look period gives you a short window to review your policy in detail and decide if it truly meets your needs.

Here’s the step-by-step guide for how the free look period works in the life insurance policy:

Receive the Policy Document: The free look period begins from the date you receive your insurance policy document (physically or digitally).
Review the Policy: Carefully read all terms, conditions, coverage details, exclusions, and benefits. Use this time to clarify any doubts with your insurer or agent.
Assess Suitability: Evaluate whether the policy aligns with your financial goals and needs. If you find any discrepancies or if the policy doesn’t meet your expectations, you can opt to cancel it.
Initiate Cancellation (if needed): If you decide to cancel, notify your insurance company in writing (via email, letter, or online portal) within the free look period. Clearly state your reason for cancellation.
Submit Required Documents: Provide necessary documents such as:
1. Policy copy
2. ID proof
3. Premium payment receipt
4. Cancellation request form (if required by the insurer)

Insurer Processes the Request: The insurance company will review your request and may contact you for further clarification or to address your concerns.
Refund Issued (with Deductions): If you proceed with cancellation, the insurer will refund your premium after deducting:
1. Stamp duty charges
2. Medical examination costs (if any)
3. Proportionate risk premium for the coverage period
4. Administrative charges

Receive Refund: The refund is typically processed within 7–15 working days, depending on the insurer.

Did You Know?

IRDAI mandates a minimum 15-day free look period for all life insurance policies, extended to 30 days for online sales

Source: IRDAI

What are the Benefits of Free Look Periods?

A free look period enables you to terminate the life insurance policy you have bought if the policy doesn’t align with your needs and requirements. You can cancel the policy without paying anything extra.

Apart from this, there are the following benefits of a free look period:

You get additional time to review the terms and conditions of the policy carefully.
If you do not like the specific terms or conditions of the policy, you can terminate it within the free look period.
You don't have to provide a necessary explanation as to why you want to cancel the life insurance policy. It can vary depending on the insurance company.

5 Things to Consider about a Free Look Period

While there are many advantages of a free look period, you must be aware of several other factors as well.

Enter Correct Details on the Form: When you buy a life insurance plan, fill in the correct details. Providing incorrect information may lead to the cancellation of your policy.
Take Time to Review the Policy: You will have 15 days to understand all the terms and conditions of the policy. Make efficient use of this time to go through the terms, communicate with your company, and ensure that the policy aligns with your life goals.
Do Not Expect a Full Refund of Your Premiums: Even if you cancel your life insurance plan within the free look period, if the risk-cover benefit of your policy has already come into effect, the insurer can deduct the risk premium before cancelling your policy.
Properly Communicate with your Insurer: If you have an issue with your policy, you must communicate it to your insurer. It is better to communicate in writing, so they get a formal note from your end. If there is any delay in the cancellation of your policy, visit your insurer's office.
Save the End Date of your Trial Period in Advance: Keep track of the start and end date of your free look period. As soon as you get the policy, your trial period will begin. Also, before you sign the receipt, check the date. It is to ensure that you do not sign on a back-dated receipt. It can reduce your 15-day free look period which may lead you troubles in cancellation of the policy.

Conclusion

The free look period serves as a crucial safety net for anyone purchasing insurance in India. It empowers you to thoroughly assess your policy’s terms and benefits, ensuring that your coverage truly matches your needs and expectations.

If you discover that the policy isn’t right for you, this window allows you to cancel without significant financial loss. By understanding how the free look period works, including its duration, the cancellation steps, and the refund process, you can make smarter, more confident decisions about your insurance. Always take advantage of this period to secure the best possible protection for yourself and your loved ones.

Glossary

Free Look Period: A review window allowing policy cancellation after purchase without penalties, subject to minimal deductions
Risk Premium: The portion of the premium charged for coverage during the days the policy remained active
Stamp Duty: A statutory charge deducted from the refund when a policy is cancelled during the free look period
Policy Document: The official contract outlining coverage, exclusions, benefits, and terms of an insurance plan
Free Look Cancellation: The process of exiting a life insurance policy within the free look period and claiming a refund

FAQs Related to Free Look Period

The term of a free look period is usually 15 days. If you have bought the policy online, free look period can be extended up to 30 days after you receive the policy documents.

You can terminate your policy if it doesn't match your financial strategies. Contact the insurer and inform them the reason behind cancellation. You need to share your request in writing to the life insurance company.

The free look period begins from the date you receive the policy document, either physically or digitally, not from the payment date.

Yes, a free look period in insurance also applies to health and general insurance policies, though timelines and conditions may vary.

If you cancel during the free look period, the insurer refunds the premium after deducting stamp duty, medical costs (if any), and proportionate risk premium.

Disclaimer - This article is issued in the general public interest and meant for general information purposes only. The views expressed in this blog are solely those of the writer and do not necessarily reflect the official policy or position of Canara HSBC Life Insurance Company Limited or any affiliated entity. We make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability with respect to the blog or the information, products, services, or related graphics contained in the blog for any purpose. Any reliance you place on such information is therefore strictly at your own risk. You should consult with a qualified professional regarding your specific circumstances before taking any action based on the content provided herein.