Find out how to cancel a life insurance policy during the free consultation period and get a refund
If someone purchases a life insurance policy, they are offered a free review period at the start of the policy. This period gives policyholders the opportunity to research even after purchasing a policy and check whether or not the conditions mentioned in the policy documents are the same or not from what they had assumed.
You can take advantage of the free consultation period to obtain more details on the new insurance policy that you have just taken out.
During the free consultation period, the insured is free to continue to ask questions of the insurer, in case the latter is not clear on the terms of cover or wishes a better understanding of the policy.
If you get the required clarity and are satisfied, you can continue, otherwise you can exercise the option to cancel during this period.
Here’s how to cancel an insurance policy during the free consultation period and get a refund.
Remember that the cancellation and return of the policy to the insurance company must be done during the free consultation period to get a refund.
Upon receipt of the cancellation request, the insurance company will contact the insured to find out the reasons for the cancellation and try to find solutions. However, if the policy is still to be terminated, the insurance company will need to process the request and issue a refund.
The percentage of the money the policyholder will recover varies from insurer to insurer.
In accordance with Irdai regulations, if the insured has made no claim during the free examination period, he is entitled to reimbursement of the premium less the costs incurred by the insurer for the medical examination and stamp fees.
It is important to go through the policy document after purchasing the plan to avoid problems when settling the claim.