ActivityTracker

Glossary

How long is the free-look period, and what's refunded if you cancel?

The free-look period is the time after a new life or accident and health policy arrives during which the owner can read its terms and cancel it for a refund, less certain expenses, and in Singapore it's at least 14 days.

How it works

The rule is in law. Singapore's Insurance (General Provisions) Regulations say a life or accident and health policy with a term of a year or more must give its owner at least 14 days after receiving it to examine the terms and to cancel.

The 14 days run from the day the policy is received. LIA adds that if it's posted or emailed, the 14 days start seven days after it was sent.

What comes back: the regulations let the owner recover what they paid, and let the insurer recover its underwriting expenses. LIA puts it as the premium, without interest, less costs such as a medical examination fee and administration charges. On an investment-linked policy, the insurer can adjust the refund for any change in the units' market value, so it can be less than was paid.

Differences to know:

  • Integrated Shield Plans get 21 days, LIA and MoneySense say.
  • MoneySense notes travel, car and maid insurance have no free-look period.
  • Cancelling is done in writing to the insurer, inside the period.

Worked example, with made-up dates and figures: a policy is emailed on 1 March. Under LIA's rule it counts as received on 8 March, so the 14 days run to 22 March. The owner writes to cancel on 18 March and gets back the premium paid, less the S$200 medical examination the insurer arranged.

Where it shows up in your week

The 14 days start when the documents arrive, and so do the questions. The CRM keeps what a client asked and your reply on their page, so both of you can see it inside the window.

Questions advisors ask

Sources

Fourteen days go fast.

Answer the questions inside them.

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