Insurance policy cancellation: How to cancel an insurance policy during free-look period and get a refund (2024)

FAQs

Insurance policy cancellation: How to cancel an insurance policy during free-look period and get a refund? ›

Cancel your policy

The free look period is a period of time, typically 10 to 30 days, in which a new life insurance policy owner can terminate the policy and have their premium refunded. Canceling during the free look period will incur no penalties, such as surrender charges.

Generally, insurers will refund you the money for the unused portion of your policy, assuming you paid in advance. However, depending on your state, and when you cancel, your insurer may charge a cancellation fee.

Cancel your life insurance or funeral policy and you won't get any money back, including the premiums you paid. This is because insurance policies are risk products, not savings and investments products, and don't have a cash value.

Yes, you can, although the only way to get back all your premium payments is to do so during the initial “free look” period. However, depending on the policy type and circ*mstances, you may receive some money from surrendering a whole life policy that has accumulated sufficient cash value.

Cancellation of policy

I hereby submit that I am the owner of an insurance policy number…………….. I understand that as per the terms and conditions of the policy contract, I can avail freelook cancellation of within 15 days of the receipt of the policy contract.

Some insurance companies will allow you to reinstate your policy if it gets canceled, while others will not. If your existing provider will not reinstate your auto policy, you will have to apply for coverage through another insurer or have your current insurer issue a new policy, if possible.

According to the LIC brochure: Guaranteed Surrender Value = 30% X Total premiums paid. The first-year premiums and all the added premiums or premiums for accident benefits or the term rider are excluded from the same.

You won't always get a cancellation refund.

If you've paid more toward the policy than is owing for time on risk, you will receive a cancellation refund for the difference. If you've paid less toward the policy than is owing for time on risk, you will owe the insurance company for the difference.

What is free look period? ›

A free look period is a window in which you can cancel your insurance policy without paying for the surrender charges. Moreover, the insurance company refunds your first premium if you return the policy within the period. The free look cancellation period is usually up to 15 days of policy issuance.

A policyholder can cancel the term plan within the free look time without paying any cancellation charges to the insurance company and get the entire money-back for the premium amount paid.

Just tell your insurance provider that you want to cancel and they'll arrange it for you. You'll probably have to pay a fee, which may be described as an administration, arrangement, processing or cancellation fee by your insurance provider. This fee can vary among providers and depending on when you cancel the policy.

You may want to cancel an insurance policy if you have just bought it and have changed your mind. By law, you have a minimum 14-day cooling-off period during which you can cancel the policy for any reason.

In case you still wish to cancel your insurance policy within free-look period, you are advised to visit a nearest Max Life Insurance branch and submit your request. Click here and click on the 'Locate a branch office' tab to locate your nearest Max Life Insurance Branch.

Cancelable insurance is a type of policy that either the insurance company or the insured party may terminate during the coverage term. Usually, the insured can terminate a cancelable policy at any time, but If the insurer cancels the policy, they must give advanced notice and also refund any prepaid premium.