"Free Look Clause" in your Life Insurance Policy

What is Life Insurance Policy?

A contract under which an insurance company agrees to pay money to a designated beneficiary upon the death of the policyholder. In exchange, the policyholder pays a regularly scheduled fee, known as the insurance premiums.

What is a "Free Look Clause" in your Life Insurance Policy?

As per the directions of the Insurance Regulatory and Development Authority (IRDA), every life insurer, while issuing the policy, is obliged to offer a 15 day grace period to the insured for going through the terms and conditions offered under the policy. This 15 day grace period starts from the time the insured receives the policy. It will be there in your policy as well.

What can the Insured do within the grace period?

If the buyer feels that the policy does not offer what he or she was promised at the time of discussions with the insurance agent, he or she can return the policy and claim a full refund of the premium paid till that time.

Such a clause has helped check the mis-selling of life insurance policies.

The book "Rat Race to Financial Freedom" will go through every aspect of Life Insurance and what policy you should look for that can provide security and coverage to your family. A wise decision in this often neglected area can yield you significantly high returns and provide maximum security to your family, thus bringing your financial freedom goals closer to you. Each penny saved is going to contribute to your goal.

Cheers

Manoj Arora

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