What Is A Free Look Period In Your Insurance Policy?
Insurance is a necessity. While health insurance is compulsory in many countries, one can get insured like their houses, vehicles, etc. Many celebrities and high-class people even get their body parts guaranteed, which can be observed from time to time. Insurance is not restricted to one country or place. Instead, it is typical behavior in all countries and cities. While in the USA, health insurance is compulsory, in countries like India where vehicle insurance is mandatory.
Many private and public companies can help in the insurance policies, which plan to get, and from whom is your choice. While there are different terms and conditions associated with other insurance companies, most of them serve the same purpose.
What is meant by an insurance policy?
If we try to explain what is meant by an insurance policy, one can say that it is a contract between a policyholder and an insurer according to which a holder can claim to get their insured item paid for when met with damage or loss. When someone gets something ensured, they will have to pay monthly, quarterly, or yearly as per the policy they choose.
This amount keeps on collecting, and when the insured item gets damaged or lost, the holder can claim that money for their benefit. Each insurance is specific and targets one aspect, like health insurance covers a person’s health, while car insurance covers your car. There are many types of insurance and policies which vary from package to package.
Thus, in simpler words, one can say that insurance is collecting a certain amount of money from time to time to be used at the time of need.
What is a free look period?
The free look period is the time before which a person can cancel their insurance policy without getting penalized for it by the insurance company. The period varies from an insurance policy to a policy, which is also dependent on the insurance company.
If we talk in general, this free look period can vary from 10 days to 30 days. Under this, one can get all their money and premiums returned they had paid to date, and the insurance company won’t impose a penalty. But what is required to be remembered is that one needs to read all the terms and conditions before starting an insurance policy.
Advantages of the free look period
The free look period has its advantages.
- These advantages can be returning the entire investment if the new policyholder finds that they made the wrong deal.
- Also, there is no penalty, which gives the policyholder a chance to get an idea regarding their insured policy.
- These insurance policy contracts are legal; there is little to no trouble while you want to null it, especially during the free look period.
- It gives a chance to the policyholder to think before going any further with the policy.
How to claim for a free look period?
Suppose a person is not satisfied with their policy. In that case, they get a chance to end the policy within a specific period called the free look period, during which you get all the premium money back, and it is not even imposed with a penalty. While different companies have different terms and conditions, claiming a free look period varies with the changing companies.
After reviewing the policy, if the holder is unsatisfied, they can write to their agent or the company directly and ask to cancel the policy. There are different ways to do this. Some might be done just with the email, some might ask to fill the forms in physical mode, but if the free look period gets over and you want to cancel the policy, the process might take a long time, and you might even be fined for the same.
Conclusion
Insurance policies are essential as they act as an economic safety guard against damage to our assets. While it sounds effortless, the choices, terms, conditions, and the different aspects of the process make it a bit complicated. In this article, we discussed the free look period, which is beneficial to the policyholder giving time to review and think about the policy they acquired.
