14 Day Free Look: Life Insurance’s inbuilt warranty

Posted 24 December, 2015 by Clearly
in Technical Smechnical



14 Day Free Look: More credible than what he has to offer


Many purchases in Singapore come with a warranty. Some come free with the purchase, others you pay a little extra to get increased duration or cover, or even both.

A good example of this is perhaps electronic goods, like your laptop.

A bad example of this is perhaps our buddy Jover C, who charges quite a lot for his warranties.

But he isn’t the main focus of our article, and we send our regards to him directly to Changi.

You may have heard about Life Insurance’s own “warranty” called the 14 day free look period.

How exactly does it work?

Lets walk through the entire process from start to finish.


1. Policy Cancellation within 14 days


Get out of jail free

Get out of (financial) jail free card


Basically the 14 day free look is a feature of every life insurance plan sold in Singapore, something like a get out of jail free card.

Once you have paid the premium, and received the policy documents (the actual policy documents which will either be mailed to you or hand delivered to you if you have a hardworking agent), you will have 14 calendar days from that day onward to change your mind.

The free look policy enables you to cancel your policy should you choose to do so, for any reason whatsoever. It could be that you realized the policy isn’t suitable for you, there are better plans out there, or even if your mother in law objects. Any reason is good enough.


2. Inform the Insurance Company or the Agent


Film Title: "Taken"

I don’t know who you are, but I know what I want


To activate the free look, all you need to do is to either contact the insurance company or the agent you bought the plan from, to express your desire to cancel the policy. They may ask for a written note or email from you as a record, which you provide most willingly.

And no, Liam Neeson style threatening is not necessary. Although it would be cool if you could pull it off.


3. Collect the Premium you have paid


There you go.. did I miss one or two zeros?

There you go.. did I miss one or two zeros?


Once your cancellation order has been received, the Insurance company will proceed to refund your premium paid, which could take anywhere from 3 to 7 business days depending on their eagerness to return your money.

The usual practice would be to mail a cashier’s order to your listed address.

Note that this premium refund will be net of any fees associated with medical tests that were performed for the purpose of policy inception. (Sometimes the company pays for medical tests before they decide to accept your application, and those tests are paid for by the company for the purpose of ascertaining your medical condition)

For Investment Linked Plans, the refunds will be net of any investment losses suffered within the 14 days. If there are investment gains made during the 14 days, you don’t get any of it at all. This is to prevent people abusing the free look feature to gamble. We have Singapore Pools and MBS for that exact purpose.

That concludes the free look process.


Sagely Advice From Us


Use it, you must not. A jedi, you are

Use it, you must not, for a jedi, you are


The 14 day free look feature was designed to protect people from making financial blunders. Who exactly are these people?

The usual suspects – the elderly, the illiterate, and the uninformed. But in this day and age of information abundance, should you be counting on this free look feature to protect you?

If you are reading this article, then our advice to you is not to depend on the free look feature. It’s kind of like adult diapers – you could wear one for sure, but most likely you don’t need it at all.

Far better to keep yourself well informed, make the right choice regarding your plans and buy them with confidence. Leave the diapers to those who need it the most!

Do you have an experience with the free look process? Let us know in the comments below!

www.ClearlySurely.com aims to eradicate the knowledge gap between consumers and Life Insurance. Our Vision is that one day, every Man, Woman, and Child will be properly insured.

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