NISM Certifications · NISM-Series-X-B: Investment Adviser (Level 2) · Life Insurance Products
Under the Insurance Act, which feature allows a policyholder to cancel a newly issued life insurance policy within the stipulated period after receiving the policy document?
The free look period lets a policyholder cancel a newly issued life policy within the stipulated period after receiving the policy document, usually receiving a refund of premium after permitted deductions. It differs from the grace period, which concerns late premium payments.
- AFree look periodCorrect
- BGrace period
- CSurrender period
- DRevival period
Explanation
The free look period lets the policyholder review the terms and return the policy if unhappy, typically getting a refund of premium after specified deductions. The grace period relates to late premium payment, while revival relates to reinstating a lapsed policy.
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