Cooling-off period
A cooling-off period is the time after purchasing an insurance policy during which you can cancel and receive a full or partial refund, without penalty. In the UK, this is typically 14 days for most personal insurance policies under FCA rules. It is also called a free-look period in US life insurance.
How it works
The cooling-off period starts from when you receive your policy documents (not when you purchase) in the UK. If you cancel within this period, the insurer must refund any premium paid, minus a charge for any days of cover already used and an administration fee if stated in the policy. If you have already made a claim during the cooling-off period, the insurer may deduct the claim amount from any refund.
After the cooling-off period, cancellation terms become less favourable — insurers may apply short-rate cancellation penalties rather than pro-rata refunds. Always check your policy schedule for the specific cancellation terms. See also the FCA guidance on cancelling insurance.