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Features
Ref. No. KLI/22-23/E-BB/492
The free look period is a specified timeframe after receiving an insurance policy, during which policyholders can cancel the policy without penalties and receive a refund. This period allows individuals to review the policy's terms, ask questions, and ensure it aligns with their needs. If dissatisfied, they can cancel the policy, and the insurer will process a refund minus minimal deductions.
The free look period is the time frame during which you can cancel your insurance policy if you are dissatisfied with any of the terms and conditions mentioned in the policy documents. The insurer will refund the premium you have already paid without deducting any surrender charges.
According to the IRDAI notification dated March 2024, all life and health insurers shall provide policy buyers with a free look period of 30 days from the date of receiving the policy documents. This will be applicable to policies sold electronically or otherwise.
The free look period insurance gives you valuable time to review your policy documents thoroughly after you purchase the policy. This window allows you to examine the policy’s features, inclusions, and exclusions at your own pace, ensuring you fully understand what you are signing up for.
Another important benefit is that it enables you to analyze the policy terms from your perspective rather than solely relying on the agent’s interpretation. If any discrepancies or unclear clauses arise, you have the opportunity to seek clarification or address your concerns directly with the insurer.
Further, life circumstances and long-term goals can often change. The free look period provides the flexibility to reassess whether the policy still aligns with your future plans. For instance, if you identify that the policy does not support your evolving financial or life objectives, you have the option to cancel without paying surrender charges.
Ultimately, the free look period is a tool for customer empowerment. It minimizes instances of mis-selling, reduces the likelihood of regretful purchases, and promotes greater satisfaction among policyholders. It can contribute to fewer policy cancellations and build trust between insurers and customers.
The free look period begins the moment you receive your life insurance policy document, whether physically or digitally. You have a limited timeframe (30 days) to review the policy terms, conditions, and features. You can evaluate whether the policy meets your expectations and requirements without the risk of being locked into it prematurely.
If you decide to cancel the policy during this period, you need to submit a written request to the insurer, either online or offline, explaining your reason for cancellation. Along with the request, you must provide the original policy documents and any additional information the insurer might require. Once your cancellation request is processed, the insurer will initiate a refund of the premium amount, minus specific deductions such as stamp duty, medical examination fees, and the risk premium for the coverage period.
No matter whether you are buying term insurance, whole life insurance, money-back policies, or any other insurance plans, you should pay attention to the following details regarding the free look period:
The free look period gives policyholders the flexibility to cancel the policy without financial loss if it does not align with their expectations. This is made possible due to the refund process.
Now that you know what is free look period in insurance, you should familiarize yourself with the steps that can help you access this route to cancel your insurance policy.
If you cancel your policy after the free look period, you will not be eligible for a full refund of the premium. Instead, the insurer will charge a cancellation fee or penalties. Any refund provided will be subject to the policy terms, which could include deductions for the coverage period used.
Additionally, if there are any outstanding premiums or payments, you may still be required to settle those. Depending on the insurer and the policy type, the refund process can be more complicated.
After receiving your insurance policy, take immediate action to protect your financial interests. Start by carefully reading through the entire document, paying close attention to terms, conditions, and coverage details. Do not hesitate to contact your insurance agent or company if anything seems unclear. Use the free look period wisely to review and assess whether the policy truly meets your needs. Remember, this is your opportunity to make an informed decision without facing significant financial penalties, so take your time, ask questions, and trust your judgment about the right insurance coverage for your situation.
1
As per IRDAI, all insurance policies with a tenure of more than one year will have a free look period of 30 days, irrespective of whether they are sold online or physically.
2
Yes, you can cancel your insurance policy during the free look period for any reason if you are dissatisfied with the terms or conditions of the policy.
3
When you cancel within the free look period, the insurance company refunds the premium after deducting applicable charges, such as medical examination fees and stamp duty.
4
It generally takes 7 to 15 working days to receive a refund after the cancellation request is processed during the free look period. It will, however, vary as per the insurer.
5
Yes, some charges like stamp duty, medical examination fees, and proportionate risk premiums for the coverage period may be deducted from the refund amount.
Amit Raje is an experienced marketer who has worked in various Fintechs and leading Financial companies in India. With focused experience in Digital, Amit has pioneered multiple digital commerce in India. Now, close to two decades later, he is the vice president and head of the D2C business department. He masters the skill of strategic management, also being certified in it from IIMA. He has challenged his challenges and contributed his efforts in this journey of digital transformation.
Prasad Pimple has a decade-long experience in the Life insurance sector and as EVP, Kotak Life heads Digital Business. He is responsible for developing user friendly product journeys, creating consumer awareness and helping consumers in identifying need for life insurance solutions. He has 20+ years of experience in creating and building business verticals across Insurance, Telecom and Banking sectors
Features
Ref. No. KLI/22-23/E-BB/2435
The information herein is meant only for general reading purposes and the views being expressed only constitute opinions and therefore cannot be considered as guidelines, recommendations or as a professional guide for the readers. The content has been prepared on the basis of publicly available information, internally developed data and other sources believed to be reliable. Recipients of this information are advised to rely on their own analysis, interpretations & investigations. Readers are also advised to seek independent professional advice in order to arrive at an informed investment decision. Further customer is the advised to go through the sales brochure before conducting any sale. Above illustrations are only for understanding, it is not directly or indirectly related to the performance of any product or plans of Kotak Life.
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