Mis-selling is very common in Life Insurance and happens due to many reasons and in many forms. For one, the existing commission structures kind of encourage the agent to get misguided and focus more on his/her earnings rather than on the specific needs of the customer.
Add to this the high complexity of products and low levels of awareness amongst the Life Insurance prospects and customers. And what we get is a huge chunk of customers who are unhappy with what they have been sold.
IRDA hence came-up with a clause that allows Life Insurance customers to return/cancel their purchase within 15 days of receipt of the policy document.
This period of 15 days is referred to as the Free Look Period.
Note: This is 15 days from policy receipt, NOT 15 days from premium payment.