You signed the application, the policy document has arrived, and only now do you read a condition that isn't what you understood. What can you do? The answer is that the insured has a right known as the free look period — the right to examine the policy. Here are the details.

What the free look period is

It is the window after receiving the policy during which the insured may cancel the contract and receive the premium back under the prescribed rules. It is generally around 15 days from the date the policy is received, and longer for purchases made by telephone. The period and conditions follow what is stated in the policy and the OIC's rules [check the latest information].

How much do you get back if you cancel?

Generally the premium is returned, less certain items the rules permit deducting, such as a medical examination fee (if any) and the prescribed charge. The exact amount depends on each policy's conditions. This is quite different from surrendering after the window has passed, which usually returns considerably less in the early years.

What to do with that window

The free look period is the golden opportunity to read the actual policy in detail. What to check:

  • The cover and the sum insured — do they match what you discussed with the seller?
  • The premium payment term and the cover term
  • Exclusions, waiting periods, and renewal conditions
  • Your personal details and the beneficiary's name — spelled correctly and complete?

If it doesn't match what you intended

Don't sit on your doubts. Contact the agent or the company for an explanation first; sometimes it is simply a misunderstanding that can be cleared up. But if, on consideration, the plan genuinely does not suit your needs, exercising the right to cancel during this window is an option the law provides — by giving written notice to the company within the time limit.

In short

The free look period is a safety net for the buyer. Make use of it by reading the actual policy the moment it arrives, rather than putting it in a drawer. The best purchase decision is one that can still be reconsidered, and this window is that chance.