free look period
Also called: masa uji polis
An initial period to cancel a policy without penalty if it doesn't suit you.
What it means
The free look period is the grace period after an insurance policy is received during which the policyholder may cancel the policy and get a premium refund. In Indonesia, this period generally ranges from a few days to two weeks from when the policy is handed over, depending on the company's terms and the product type. During the free look period, the policy is already active, but the consumer is given the chance to review the contract calmly. If canceled, the premium refund is usually reduced by certain fees set out in the policy.
Why it matters for families
The free look period is a safety net so families don't get stuck with products that don't fit their needs. Without using it, consumers can be tied for years to premiums that strain the budget. Misunderstanding the deadline can cause the right to cancel to be lost, so premiums keep running even though the product doesn't fit. Check the policy receipt date and note the deadline.
Example
For example, a life insurance policy is received on March 1 and the free look period is 14 days. If on March 10 the family realizes the benefits don't fit and submits a written cancellation, the premium can be refunded according to the policy terms. If they only contact the agent on March 20, that right has usually passed.
Common misunderstanding
Some people think the free look period means a premium-free period. In fact, the policy remains active and premiums still fall due; what is given is the right to cancel with a refund according to the terms.