Having a life insurance policy is a must. But what if the insurance policy you bought didn’t turn out to be right for you? That is when the free-look period of your life insurance policy comes into the picture. The free-look in period is given to you if you are a policyholder to assess and examine the policy document. If the policy doesn’t work for you, then you can terminate your life insurance policy during the free-look period. You can also terminate the policy if the inclusions and exclusion terms are not what you were told during the time of the purchase. Read on to know more about the fee-look period of a life insurance policy.
After buying a life insurance policy, there could be many reasons why you want to cancel it. The process of cancelling your life insurance policy is simple. You can call the insurer about your plan to cancel or stop paying premiums. It can have impacts depending on the type of policy, policy start date, and the terms of conditions of your policy. Cancelling a term life insurance is easy, but you may be charged with extra cancellation fees when it comes to cancelling whole life insurance. A free-look period is complimentary with all types of life insurance policies. As per the law, you as a policyholder can cancel your insurance policy during the free-look period and get a refund for the same.
How to cancel your life insurance policy while the free-look period is still an option?
If you feel like your policy doesn’t meet your requirements, then you can easily cancel your policy during the free-look period. You need to follow the following steps to cancel your policy while your free-look period is still an option.
Contact your insurer about your plan to cancel the policy- The first step is to send a request to your insurer that you want to cancel your policy. You will be required to fill in a requisition form so that the process of cancellation of your policy can start. Many financial institutions have the option of submitting the form online for your convenience. The information you would be required to add would be the details of your policy, details of your insurance agent, the date when you received the policy papers, and the reason you want to discontinue the policy.
Response from your insurance provider- Once they have received your request, you will get a confirmation for the same. They will contact you and try to sort out the problem that became the dealbreaker for you. If you are still not satisfied, then you can stay firm with your decision, and the insurance providing company will have to cancel your policy.
Receiving the refund- Now that the policy has been cancelled, you will be eligible for a refund. You will either receive the amount directly from your bank, or they will send you a cheque of the amount. There will be certain deductions like stamp duty costs, proportionate risk premium and the cost that your insurer paid for on the medical check-up, if there’s any.
These are the steps you need to follow to cancel your policy. Make sure you get in touch with your bank to take advantage of the free-look period if you are unsatisfied with your life insurance policy.