Free Look Period in Insurance: The 2026 Guide (Now 30 Days for Online Policies)

By
Hemant Beniwal
-
28
Free Look Period in Insurance – Benefit & Process

Last Updated on April 26, 2026 by teamtfl

A client called me last month, genuinely distressed. His bank relationship manager had sold him a single-premium insurance policy when he had walked in to renew a fixed deposit. He had signed the form without reading it carefully. The premium was Rs.3 lakh. He called me four days after receiving the policy documents.

My first words: “You still have time. Use the free look period.”

He got his Rs.3 lakh back. Minus a small deduction for stamp duty and the risk period – but the bulk of the money came back.

Free look period is one of the most important and most underused rights an insurance policyholder has in India. And in 2024, IRDAI significantly expanded this right – a change most people still do not know about.

Quick Answer: Free Look Period in 2026

15 days for policies sold through agents in person. 30 days for policies sold online, by telephone, or through any distance marketing channel (IRDAI 2024 update). The window starts from the date you receive the policy documents – not the date of purchase. You can return any life or health insurance policy within this window and get most of your premium back.

What is the free look period?

The free look period is a legally mandated window during which a policyholder can return an insurance policy to the insurer, cancel it, and receive a full refund of the premium paid – minus certain minor deductions.

Think of it as a right to reconsider. Insurance is a complex, long-term commitment. The free look period recognises that many people sign on the dotted line before fully understanding what they have bought. It gives you time to read the policy document carefully, compare it to what you were told, and exit if there is a mismatch.

It applies to life insurance policies and health insurance policies. It does not apply to general insurance policies such as motor insurance or travel insurance.

The 2024 IRDAI update: 30 days for online and distance marketing

This is the change most people are unaware of. IRDAI’s 2024 guidelines extended the free look period to 30 days for policies sold through distance marketing channels. This includes policies sold online (directly through the insurer’s website or aggregator), sold via telephone, or sold through any channel where the policyholder and the agent are not physically present at the time of sale.

The original 15-day window continues to apply for policies sold face-to-face through an agent or through a branch office visit.

In practical terms: if you bought your term plan from PolicyBazaar or directly on HDFC Life’s website, you have 30 days to return it. If your LIC agent came home and sold you an endowment plan, you have 15 days.

What is deducted when you use the free look period?

The full premium is not always returned. The insurer can deduct the following:

  • Medical examination charges – if you underwent tests as part of the underwriting process
  • Stamp duty – the cost of stamping the policy document
  • Risk premium for the period the policy was in force – mortality cost for the days between policy commencement and your cancellation request
  • For ULIPs only – the impact of NAV movement during the period

For most term plans, the deductions are minimal – often less than Rs.500 to Rs.1,000. For ULIPs, the deduction can be larger if markets moved against you during the period. The bulk of your premium is returned in either case.

Mis-sold an insurance policy? Here is your next step.

If you are unsure whether what you were sold is appropriate for your needs, a 30-minute review can save you years of paying for the wrong product. Most mis-selling becomes obvious within minutes when examined with a fresh lens.

Book a Clarity Call

How to use the free look period: step by step

Step 1: As soon as you decide to cancel, call the insurer’s customer care number. Ask specifically about their free look cancellation process. Get a reference number for the call.

Step 2: Do not rely on the agent. Contact the insurer directly – by phone, email, or by visiting the branch. The agent has no role in processing a free look cancellation and has every incentive to delay you past the deadline.

Step 3: Submit the written cancellation request through the insurer’s online portal, by email to their customer care address, or physically at a branch. Attach a copy of the policy document and the filled cancellation form (the insurer will provide the format).

Step 4: Get an acknowledgement. Whether you submit online or in person, ensure you receive written confirmation that your cancellation request has been received – and the date it was received. Keep this permanently.

Step 5: Follow up within 10 days if you have not received refund confirmation. The insurer is required to process the refund within 15 days of receiving the cancellation request.

Four things that can go wrong – and how to prevent them

The agent delays delivery of the policy document. Some agents hold on to the policy document so the free look window passes. Counter this by following up directly with the insurer’s customer care after a week of purchase to confirm when documents will be dispatched. Note the date of receipt yourself.

The agent promises to “fix the problem” to buy time. If you have decided to cancel, do not wait for explanations or promises. Go directly to the insurer. Every day of delay is a day of your window used up.

Different insurers have different procedures. Some require a physical cancellation form, others accept email. Call customer care first to understand the exact procedure for your specific insurer.

Postal delays eat into the window. If you submit physically by post, send by speed post and keep the tracking receipt. The date the insurer receives your request matters – send it with several days of buffer before the deadline.

What if you missed the free look period?

You still have options. If you were mis-sold a policy, you can file a formal complaint with the insurer even after the free look window has closed. If the insurer does not resolve it satisfactorily, escalate to the Insurance Ombudsman for your region. IRDAI’s Bima Bharosa portal also allows online complaint registration.

The success rate outside the free look period is lower and the process takes longer – but it is not impossible. The sooner you act after discovering the mis-selling, the stronger your case.

Also read: How to Spot Mis-Selling in Mutual Funds and Insurance Before It Costs You

Frequently asked questions

Is the free look period 15 days or 30 days in India?

As of 2024, the free look period is 15 days for policies sold through agents in person (face-to-face), and 30 days for policies sold online or through distance marketing channels (telephone, internet, or any channel with no physical meeting). This expansion to 30 days was introduced by IRDAI’s 2024 guidelines. The window starts from the date you receive the policy documents – not the date of purchase.

What is deducted when I cancel a policy during the free look period?

The insurer can deduct: cost of medical examinations if any were conducted, stamp duty on the policy document, and mortality risk premium for the period the policy was in force. For ULIPs, NAV movement during the period may also be factored in. For most term plans, deductions are minimal – often a few hundred rupees. The bulk of the premium is returned.

Can I use the free look period if my bank mis-sold me a policy?

Yes. The free look period applies regardless of the channel through which the policy was sold – agent, bank, or online. Contact the insurer directly rather than going through the bank, as they have an interest in preventing the cancellation.

What if the insurer refuses to process my free look cancellation?

File a formal complaint with IRDAI through the Bima Bharosa online portal or through the Insurance Ombudsman for your region. The Ombudsman can adjudicate disputes up to Rs.50 lakh and the process is free. Always keep a copy of your cancellation request with date proof to support your complaint.

Have you ever used the free look period? Did the process work smoothly, or did you face resistance? Share your experience in the comments – it helps others know what to expect.

28 COMMENTS

  2. Hi Sir,
    I have purchased a Life insurance policy of Bajaj Allianz last month.I was misinformed about the sum assured(informed 10 times the premium and got 5 times) by the agent.I have applied for free look option mentioning the reasons as misinformation by agent (i have recieved the bond on 7 august and applied on 21 august)and company has declined my request saying that they have delivered it on 29 july .I have no proof to prove either misinformation and date of delivery .What can i do in this case as you have mentioned that “in case a policyholder has suffered from mis selling, limit of 15 days is not applicable”.plz guide
    Thanks and regards
    Karanbir singh kaler

  3. Hemant,

    Thanks much for this much-needed post. I have been mis-sold 2 policies instead of the one which I actually wanted. Documents were delivered to my Indian address where as I live in US and had requested for email & never ever got docs in my email in order for me to verify if the policies were of night nature. Now the freelook period is over and I am stuck with those 2 policies. If I file my complaint about the cancellation of policies on the basis of mis selling, Would I be able to get the full refund!

  4. Hello sir plz help me
    I am the part of fraud by an max life insurance agent. I purchased a policy 13-03-2014 and agent tell me that 1 year plan and the agent put up a fake mobile number in my policy bond and self confirm a company verification call and in 2015 I wanna my refund compny denied the lock in period is 5 year and customer care heared me a recording of my confirmation that policy is 15 years but on the call m not agent put our phone number and verify the call without me. And i am the part of fraud
    Can I get my refund before the completion of 5 year look period in case of fraud?????

  5. Hello sir,
    Its important information you shared, but I wanted to know what’s the official period of refunds when a policy is closed with in freelook period and what should a policy holder do if that official period expires or the company is not able to give satisfactory reply for delays.
    Thanks and regards

  6. Hi ,

    I need urgent help. I have bought the kotak life insurance policy of 35000 annually for the period of 15 years. Agent insures me that after 3 years you can withdraw the amount and bank will give you anount accrued to 3 years + interest. But when i investigated then i saw surrender amount is very less and nill before three years.

    Yet i have not recieved the policy documents within few days i will get the policy documents.

    Please suggest i want to cancel the policy within the freelook period and want to exit from this policy.

    Please suggest asap its urgent

  7. Dear Sir ,

    i was purchase the policy befor 10 days and rceantly i have received policy on my address but i dont know how to canceled in free lokk period and i want to know can i go for direct in office for canceled or not.
    kindy advice for the same, if any time you contact to me my no is 7405223802
    waiting for yor reply

  8. sir, a reliance life insurance policy was sold to my father in january-2014 by a fraud agent (radhika,lives in delhi),through phone call.she assures us to provide a loan of 5 lakhs within 3 months.but now she is not answering our calls.and after enquiring about her ,we found that she is fraud agent.
    also the FREE LOOK PERIOD of my father policy is over.so is there any chance of cancelling my policy and getting full refund .plz explain me about the policy cancellation procedure for those policy whose FREE LOOK PERIOD is over.
    thanks,
    VISHWABANDHU.
    MOB-8506915654

  9. Really informative! Advisors will never share this in their own intrest.
    Will a policy holder deemed to be responsible if he overlooks this point & signs a policy doc?

  10. Hemant, Thanks for all the info. But why should a consumer pay for the medical and other expenses if he is cheated by the agent of insurance company. Why not companies charge for such deductions from agent only.

  11. POLICY SA PREM./ANNUM
    Relience Life Highest NAV RG Plan 750000 25000 – NANAK
    Reliance Market Retn Plan 2 regular 580000 10000 – NANAK
    Reliance Market return plan regular 50000 10000 – NIYATI
    ICICIPru Life Time 600000 20000 – NANAK
    ICICIPru Life time gold 400000 20000 – ARTI
    Bajaj Allianz Capital Unit Gain 408000 12000 – NANAK
    Allianz Bajaj Unit Gain Plan 300000 20000 – ARTI
    Bajaj allianz Unitgain plus Gold 504000 12000 – NANAK

    Dear Sir,
    My nAme is Nanak, wife- ARTI, daughter – NIYATI
    I HAVE ABOVE POLICIES. For most of above policies, I have paid 3-4 intallments and now the policies are on Holidays… continuing to cover Risk. I seek your advise, should I pay the regular premiums for these policies or invest the premium amount in some other investment mode??
    Thanks & Regards

  13. Hi,

    I am 25years old, pursuing my Masters now.
    Had a query regarding the BSLI Ulip plan : Dream Plan-Life Cvg-Opt 100% -Term 20 ( enhancer). Its for 20yrs and am paying a premium of 35k pa. It has a basic sum assured of 5lacs and Guaranteed Maturity benefit of 8.6Lacs. Now i have learnt through the articles that investing in ULIP’s is not advisable and costly. But my query is:
    1) Its been three years ( 2009 to 2012) now for the policy and the lock in period is around Nov’12. Should i pay the premium for the year 2012 and once the lockin period is done , shall i opt out of it or continue with the plan?
    2) What will happen if i stop paying the premium after the lockin period.
    (Also doing a basic math 35k pa for 20years = 7Lacs and will receive GMB of 8.6lacs around 20% return.)
    3) Can u suggest me good term plans where i can have life-insurance cover and maybe also think about retirement planning.

    Many Thanks
    Sivaram

  14. Very informative article Hemant. I am sure it will increase awareness among the readers and they can benefit from the free look period.

    I have a query regarding below point shared by Abhinav: –
    “it is advisable to directly contact/ write to the customer care rather than depending on the agent.”

    Would the company accept the direct route? In my experience [not with insurance but another financial product] if you have purchased a product from an agent, company tells to come via agent and not directly. Can they do that?

    • Dear Vivek,

      No the company cannot say that in insurance domain.Although some financial products may be only agent driven but still company cannot deny entertaining customers at their office.

  15. Dear Sir,

    I want information about Jeevan Saral Policy of LIC. I have heard a lot about this policy for long time investment that it yields a fixed and handsome value. Is it ?

    Regards,
    Hemant Kumar

  16. Hi Hemant

    Thanks for the informative post. Freelook is a very customer friendly option to the end consumer which empowers the customer to review the suitability of product post purchase and return if found unsuitable.

    Have two points to add:

    • In case a policyholder has suffered from mis selling, limit of 15 days is not applicable. He can come back anytime during the policy tenure, however, it is advisable to write to insurance company as soon as the mis selling is noted. The greater the delay, it gets more difficult to prove the fact of mis selling…
    • In case of Freelook, it is advisable to directly contact/ write to the customer care rather than depending on the agent. In case the agent delays the case, it may be difficult to explain the delay to insurance company, in absence of any documentary evidence/ correspondence with the agent.

    • On the policyholder’s part, it’s a good idea to make a note of the policy received date on the face of the policy document, as it can greatly help in tracking for Freelook, if need arises

    • Freelook option must not be misconstrued as an option that allows the policyholder in being lax at the time of product selection. Prospect should do his/her own due diligence at time of product selection. Its no great fun wasting all the time in the world applying for a product without adequate research and then making a Freelook claim. And yes, if one cant make the choice himself, its better to take expert advice.

    • Manirul,

      As already mentioned in the article, we should not wait for agent. We should directly contact to insurer.

  18. A free look-up clause should be included in marriage too! Will save a lot of trouble for a lot of people…look-up should be for a year 🙂

  21. Hi Hemant,

    A very nice article. Thanks for sharing this information. I was not aware of it. It will definitely help lot of people.
    I have shared this with my friends.

    Regards,
    Deepali

Comments are closed.