A Close Look at the Free-Look Option in Insurance Policies

Free-look provisions in life and health insurance allow the insured to return the policy without giving reasons. This is easier said than done. Click or copy this link for the article: https://obiterdictadotin.files.wordpress.com/2019/06/a-close-look-at-the-free-look-option-in-insurance-policies.pdf “Free-look period” provisions in insurance policies give to an insured the very important right to withdraw from his insurance contract that he has already concluded, and give him time time for thought so that he can take a conscious decision about ending the insurance contract. Free-look period provisions are mandatory in life and health insurance policies. This article analyses free-look provisions in different statutory instruments that mandate the provision, and in sample policy wordings, brochures and free-look cancellation forms. This article examines the true purpose of this provision and its use, and proceeds to posit that this provision gives to the insured an additional right to withdraw from the contract, and that it does not and cannot have the effect of terminating or extinguishing the rights of an insured under law. It suggests a model standard free-look provision.