Free-Look Period

A free-look period is the short window of time after purchasing a health or dental insurance policy during which you can review the plan and cancel it for a full refund if you are not satisfied. This consumer protection feature allows you to read the policy in detail and ensure it meets your needs before committing long-term.

How It Works

The CLHIA's Guideline G10 calls on insurers to provide a 10-day free look to purchasers of an individual life insurance or individual accident and sickness insurance contract, and every insurance company that is a member of the Canadian Life and Health Insurance Association is expected to include this 10-day free-look period in its products. The period gives you time to review the policy and confirm that it is consistent with what you expected when you applied, and if you are not satisfied, to cancel the contract for a refund of the premiums paid. According to the CLHIA, the 10-day free-look period starts five days after the policy documents have been mailed to you, or on the transmission date if the policy was sent by email, fax, or another form of instant communication. To cancel during the free-look period, you write a letter to the insurer stating that you are cancelling within the free-look period and requesting a full refund, and the insurer must comply within a reasonable amount of time. In Alberta, a 10-day free-look period with a refund of the initial premium if you cancel within that period is mandatory.

Example:

Suppose you buy an individual health and dental plan from a Canadian insurer that is a CLHIA member. You receive your policy documents and have a 10-day free-look window to read through the coverage, exclusions, and conditions. If you decide the plan is not right for you, you write to the insurer within those 10 days to cancel and, as long as you have not made a claim, you receive a refund of the premiums you paid.

What to Watch For:

Not every policy includes a free look. Group insurance contracts, mandatory benefit-plan participation, and travel, accident and sickness policies for a term of six months or less usually do not include a free-look period. Coverage can also vary by product: a Manulife Visitor to Canada travel policy, for instance, gives the purchaser 10 days from the date of purchase to review the policy and terminate it for a premium refund, provided they have not departed on the trip and no claims are in progress. Because the window is short and the conditions matter, confirm how your plan starts the count and whether a claim would forfeit your refund before you rely on the free look.