Free Look Period
The Free Look Period is a window mandated by IRDAI immediately after a life insurance policy is issued, during which the policyholder can cancel the policy without any penalty (other than minor administrative deductions). 15 days for offline policies, 30 days for online policies.
Understanding Free Look Period
The free look period exists to protect consumers from mis-selling and impulsive purchases. It allows you to read the policy document, verify that what you bought matches what was sold, and cancel without consequence if anything is misrepresented or the product is unsuitable.
Common reasons to use the free look: (1) the policy turns out to be a ULIP or endowment when you wanted term insurance; (2) the agent misrepresented benefits, riders, or charges; (3) you discover a better product elsewhere; (4) financial circumstances changed since purchase.
Why it matters
The free look period is a strong consumer protection — use it. Reading the policy document carefully in the first week is far easier than escalating disputes later. If a policy doesn't match what was promised, cancel within the free look window — it's the cleanest exit.
Example
You bought a ULIP policy on 10 February 2026 paying ₹1.2 lakh first-year premium. Reading the policy document, you realize the charges are 3% per year and the life cover is only ₹15 lakh — far less than what you needed. Within 15 days, you write to the insurer asking for free look cancellation. They refund ₹1.18 lakh (₹1.2 lakh − ₹2,000 deductions), and the policy is voided.
You bought a ULIP policy on 10 February 2026 paying ₹1.2 lakh first-year premium. Reading the policy document, you realize the charges are 3% per year and the life cover is only ₹15 lakh — far less than what you needed. Within 15 days, you write to the insurer asking for free look cancellation. They refund ₹1.18 lakh (₹1.2 lakh − ₹2,000 deductions), and the policy is voided.