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Free-Look Period in Insurance: Meaning, Example & Why It Matters

The free-look period lets you cancel a new insurance policy for a refund. How long it lasts (15-30 days), how to cancel, and what refund you get.

Harsh Soni
Written ByHarsh Soni
Last Updated 22 Jun 2026

What Is Free-Look Period?

The free-look period is a window after you receive a new policy during which you can review the terms and cancel for a refund if you're not satisfied. IRDAI mandates it on all life and health insurance policies – 15 days for most, and 30 days for policies sold electronically or through distance marketing.


How Free-Look Period Works

The clock starts from the date you receive the policy document, not the date you bought it. To exercise it, send a written cancellation request to the insurer within the window, stating your reason.

On cancellation, the insurer refunds your premium minus a few small deductions: proportionate risk-cover charges for the days you were covered, stamp duty, and any medical examination costs.


Example

You buy a health policy and, eight days after receiving it, find a plan with better terms. You cancel within the free-look period and receive your premium back, less a small proportionate deduction for the days you were covered.


Why Free-Look Period Matters

The free-look period is your safety net against mis-selling and rushed decisions. Always read the full policy wording – exclusions, waiting periods, sub-limits – inside this window, while you can still walk away. If something was mis-sold, this is your cleanest exit.

Frequently Asked Questions

How long is the free-look period?

15 days from receiving the policy for most life and health policies, and 30 days for policies sold electronically or via distance marketing, per IRDAI rules.

Will I get a full refund in the free-look period?

Almost full – the insurer deducts only proportionate risk-cover charges for the days you were covered, stamp duty, and any medical-test costs. The rest of the premium is refunded.

How do I cancel during the free-look period?

Send a written cancellation request to the insurer within the free-look window, stating your reason, along with the policy document. Keep the acknowledgement.


Related guides:

Glossary: Full Insurance Terms Glossary


Disclaimer: Educational content reflecting 2026 rules. Always read your policy wording. NYVO is an IRDAI-registered corporate agent.

FAQs

15 days from receiving the policy for most life and health policies, and 30 days for policies sold electronically or via distance marketing, per IRDAI rules.

Almost full – the insurer deducts only proportionate risk-cover charges for the days you were covered, stamp duty, and any medical-test costs. The rest of the premium is refunded.

Send a written cancellation request to the insurer within the free-look window, stating your reason, along with the policy document. Keep the acknowledgement.

Disclaimer: Educational content. Exact terms, conditions, and coverage vary by insurer and policy wording. Please refer to the official policy document before making any decisions.

Harsh Soni

About the Author

Harsh Soni

16+ years in financial services. Former investment banker at Bank of America, Kotak Investment Banking, and SBICaps, and ex-CFO of slice. Founder of NYVO and Principal Officer - IRDAI Certified.

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