Under IRDAI regulations, every life insurance policy issued in India comes with a free look period — a window during which you can review the policy document and return it for a full refund if you decide it's not what you wanted. For most policies, this window is 30 days from the date of receiving the policy document.

This right exists because of an important asymmetry in insurance buying: you often see the full policy document only after you've paid your first premium. The free look period is the regulator's way of giving you a fair chance to read what you've actually bought before you're committed.

"You don't have to give a reason to return a policy during the free look period. You simply write to the insurer, state that you wish to cancel, and a refund is processed — minus any medical examination costs incurred."

What gets deducted from the refund? Typically the cost of any medical tests the insurer paid for, stamp duty charges, and a proportionate risk premium for the days the policy was active. For term plans where no medical tests were needed, the refund is usually very close to the full premium paid.

Practically speaking: when your policy document arrives, spend 20 minutes reviewing the Schedule page. Check the sum assured, tenure, nominee details, and premium amount. If anything doesn't match what you agreed to, the free look period is your clean exit. Use it.