30-day free-look period for insurance policies: How to use this effectively

The free-look period has been increased from 15 days to 30 days for new policies issued after April 1, 2024

After buying insurance, when you read the policy documents carefully, you may come across some terms and conditions that you were not aware of. So what do you do if the policy does not align with your requirements or long-term financial goals? Well now you have 30 days to cancel it.

 

In a move to further protect consumer’s interest, the Insurance Regulatory and Development Authority of India (IRDAI) has increased the free-look period for new insurance policies from 15 days to 30 days, effective April 1, 2024.

 

This extended window provides policyholders with more time to carefully review their policy documents and cancel it if they are not satisfied with the terms and conditions.

 

 

What is a free-look period?

 

The free-look period allows policyholders to cancel their insurance policy within a specified time frame after receiving the policy documents, without incurring any penalties or surrender charges.

 

During this period, policyholders can thoroughly examine the policy details, compare them with the commitments made by the insurance provider or agent, and make an informed decision about whether to continue with the policy or cancel it.

 

How to use 30-day free-look period effectively

 

Use the time to read the policy documents thoroughly, including the terms, conditions, exclusions, and benefits. Ensure that you understand the coverage, premium payment schedule, and any limitations or restrictions.

 

Compare the policy details with the commitments made by the insurance provider or agent during the sales process. If there are any discrepancies or misrepresentations, make a note of them.

 

If you are unsure about any aspect of the policy, seek advice from a financial advisor, insurance expert, or lawyer. They can help you understand the policy and its implications better.

 

Based on your review and any professional advice, decide whether the policy meets your insurance needs and financial goals. If not, consider cancelling the policy during the free look period.

 

If you decide to cancel the policy, follow the cancellation process outlined by the insurance provider. This typically involves submitting a written request for cancellation, along with the policy documents and a copy of your ID proof.