I had recently bought a life insurance policy, which on scrutiny is not what I had in mind. Can I cancel this policy during the freelook period? Will I get my full premium amount back?-Suresh Parthasarathy, Chennai
The mandatory 15 days freelook period allows you to cancel the policy within this period. If you are cancelling a policy in this period, there are no surrender charges applicable. Remember, the freelook period is for 15 days from the date of receipt of the hard copy, so do not delay further.
The process of returning the policy is simple—you need to submit a written application for cancellation to the insurer within the freelook period. Typically, the insurer will ask you to fill a cancellation form, and return the original policy copy. Once this process is completed, the full initial premium is refunded to you, subject to deduction for mortality charges for the covered period, stamp duty charges, and costs incurred by the insurer for medical examination. So, you may not get the full premium that you paid as the settlement.
