Explainer: What Is A Free Look Period?

Mis-selling of insurance policies, especially life insurance, is an ongoing problem, either due to misinformation on the part of the agent or the seller or lack of knowledge on the part of the buyer. To protect the interest of buyers, the Insurance Regulatory and Development Authority of India (Irdai) has created a window within which a policy can be returned or cancelled after issuance. This window is known as the free look period. What Is It Meant For? Free look period is a safety net that is meant to give a second chance to the customers who may have bought a policy on an impulse. It allows you to review the policy document and check if the coverage, premium, and benefits of the insurance plan meet your needs and expectations. For instance, you may have checked the premium and coverage amount but may have overlooked the room rent limit in your health insurance policy that can...