Read your policy when it arrives. You have limited time to return it if the terms don't suit you.
What the Terms Say
Under IRDAI's rules, life policies and new individual health policies lasting at least one year have a 30-day free-look period. It starts when you receive the policy document, digitally or on paper. You can request cancellation during that period if you haven't made a claim.
The insurer can deduct the permitted cost of cover for the days used, medical examination expenses it incurred and stamp duty. For market-linked life policies, changes in the value of your units can also affect the refund.
Why It Matters
Waiting for your agent to explain the policy can use up the cancellation window. Cancelling within it also doesn't guarantee a full refund.
A Simple Example
You cancel after ten days of cover. The insurer may deduct the allowed cost of those days and other permitted expenses. Ask for a written calculation of your refund.
Check Before You Agree
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Note when you received the policy and check the cancellation process.
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Send your request directly to the insurer before the deadline.
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Keep the acknowledgement and follow up if the refund doesn't arrive.
Quick Takeaway
Read the policy promptly and submit any cancellation request on time.