Terminating your insurance policy
A life insurance policy sold in Singapore comes with a 14 day free look period. It allows the policyholder to cancel the policy within 14 days and get a full refund of the premium that has been paid.
If this is an ordinary life insurance policy, the premium has to be paid in full. If this is an investment linked policy, the policyholder will have to suffer any loss due to a change in the market value of the units. However, there should be no deduction for agent's commission or other expenses.
If you wish to cancel the policy, you have to notify the insurance company directly. Do not go through the agent, as the agent may not submit this request to the insurance company.
If you have bought a life insurance policy recently, and you are not told about the free look period, you should lodge a complaint to the regulator (MAS) that the insurance company is not complying with this requirement.
If you are not satisfied with the decision of the insurance company, you can also approach FIDREC(Financial Industry Dispute Resolution Centre). The decision by FIDREC will be binding on the insurance company.
If you are not getting a refund according to my understanding, as set out above, you can bring the matter to my attention. I will see if there is any change in practice that is different from my undrestanding.
