What is a Free Look Period in Insurance and How Does it Work?

Last year, Kavita, a 29-year-old lady in  Bengaluru, bought a health insurance plan online. She felt proud to have taken the step to protect herself financially. But when she went through the policy documents a few days later, she realised something important was missing: maternity coverage. That was one of her top priorities, and the policy did not provide it.

Instead of feeling stuck, Kavita used the free look period in insurance to cancel the policy and get most of her premium back. This small provision gave her the freedom to correct her decision and buy a plan that suited her needs.

What is the Free Look Period?

Think of the free look period in insurance as a trial window. Once you receive your policy document, you get a fixed number of days to review it in detail. If the policy terms do not match what was explained to you or do not fit into your financial goal, you can cancel it within this time period. The insurer refunds your premium after deducting certain charges like stamp duty or the premium for the days you were covered.  

How Does the Free Look Period Work?

Here is how Kavita’s cancellation process worked, step by step:

1. She bought the health insurance policy and received the policy document by email. The free look period began from that date.
2. She read through the coverage, exclusions, and benefits, only to notice the absence of maternity coverage.
3. Realising the policy did not suit her needs, she decided to cancel.
4. She submitted a cancellation request within the free look period.
5. Her insurer refunded the premium after deducting stamp duty, administrative charges, and the premium for the days she was already covered.

Essential Details Related to Free Look Periods

When Kavita bought her health insurance online, she didn’t realise how important the free look period would become for her. Here are the main things she discovered while cancelling her plan:

1. Duration: 

Most policies give 15 days from the date you receive the policy document. Since Kavita bought her policy digitally, she had a 30-day free look period, which gave her more time to review the terms.

2. Starting point: 

The countdown begins the moment the policy reaches you. For Kavita, it was the date she received the email from her insurer with the policy attached. If it’s a physical copy, the date you sign for delivery matters.

3. Refund deductions: 

Kavita’s insurer deducted small charges like stamp duty, admin costs, and the premium for the days she had coverage. If you had a medical exam before the policy was issued, that cost may also be deducted.

4. Refund timeline: 

Once Kavita submitted her request, the insurer processed her refund within 9 days. Most insurers take between 7 to 10 working days once everything is in order.

5. How to cancel: 

Policies can usually be cancelled through a branch office, an online portal, or email. Kavita preferred email because it was quick and traceable.

6. One-time use: 

The free look period applies only when you first receive the policy, not at every renewal. Kavita knew this was her only chance to back out without major losses.

What is a 30-Day Free Look Period?

Policies bought online, like Kavita’s, often come with a 30-day free look period instead of the standard 15 days. This longer duration gave her more breathing space to carefully check the policy details and make a decision without rushing. For anyone buying insurance digitally or through distance marketing, this extra time can make all the difference.
 

A Step-by-Step Guide to Cancelling a Policy Within the Free Look Period

Kavita’s experience shows that cancelling during the free look period isn’t complicated, but you do need to follow the right steps:

1. Read the policy immediately

 Kavita opened her document the same day she received it. Going through the fine print early gave her plenty of time to act.

2. Decide within the window

She didn’t wait until day 29 of her 30-day period. Deciding early helped her avoid last-minute rush and mistakes.

3. Write a clear cancellation request

In her email, Kavita mentioned her policy number, the date she received the document, and her request to cancel under the free look provision. Some insurers also ask for a brief reason, which she provided.

4. Attach supporting documents

She attached a copy of the policy document, her ID proof, and bank account details for the refund. Having everything ready avoided back-and-forth with the insurer.

5. Submit through the correct channel

Because she bought the policy online, Kavita used email to submit her request. Others may choose branch offices or insurer websites. The key is to use the channel your insurer accepts.

6. Follow up

A polite call to customer service after three days reassured her that the request was being processed.

7. Receive the refund

Nine days later, the refund was credited to her account. The insurer deducted stamp duty and the premium for the few days she was covered, but she got the rest back.

What happens if You Cancel Your Policy After the Free Look Period?

Once the free look period ends, you cannot return the policy for a refund. Instead, you may only get the surrender value if the policy allows it. For pure term plans, there is usually no refund at all. That is why it is important to review your policy carefully during the free look period. 

Make the Most of Your Free Look Period

The free look period in insurance is your safety net, just like it was for Kavita. It gives you the chance to carefully review your policy and step back if it doesn't suit your needs. Insurance is a long-term commitment, and the free look period ensures you make that commitment with clarity and confidence. 

Disclaimer: The information provided is intended for general informational purposes only. For personalised recommendations, please consult a certified insurance professional.

ARN:SLIC/Elec/Sep 2025/1162