Health Insurance 122 views March 3, 2021

You realize the true value of a health insurance plan when it helps pay your costly hospital bills in case of a medical emergency. But while choosing the right plan, it is crucial to understand its different terms and conditions too. Among them, one of the important things is the health insurance cancellation policy.

Health Insurance

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Let’s say you choose a health insurance plan to protect your finances, but after a few days or months, you are not satisfied with your plan or coverage amount and want to cancel it. What would you do in such a situation? Well, you can cancel your health insurance plan anytime without waiting any further. But it’s not that simple as several rules come under the health insurance cancellation policy.

In this article, we will be discussing every aspect related to the cancellation of your policy, such as the concept of a free look period, how much refund you will get, the steps you need to take to cancel your policy, etc. Keep reading to know more!

What is the Free Look Period in Health Insurance?

One of the important things related to the health insurance cancellation policy is the free look period. All health insurance companies provide a free look period of 15 to 30 days from the receipt of the policy document. The 15-day period is generally for offline policies, while the 30-day period stands for online policies. Within a free look period, an individual can cancel the policy, and get up to a 100% refund. The insurer will deduct a nominal fee for stamp duty charges, medical tests, if any, and the number of days an individual received coverage. So, the refund will not be 100% of your overall premium paid towards the policy.

Do remember that this free look period generally changes from one insurer to another. So, you should check your policy documents closely to know the free look period of your health insurance policy. Also, if you want to cancel your policy, you need to prove the starting date of your policy to initiate the cancellation process. You can do so by submitting your policy documents where the insurer can see the policy inception date.

Health Insurance Cancellation After the Free Look Period

As we told you earlier, you have the freedom to cancel your health insurance plan anytime. So, if you are assuming that you cannot cancel your plan after the free look period, let us tell you that your assumption is wrong — A health insurance plan can also be cancelled after the 15-or 30-day free look period.

However, here is something you need to know. You will not receive up to a 100% refund of your premium amount if you decide to cancel the policy after the free look period. The percentage of the premium amount refund depends on the duration after the free look period when you want to cancel the policy. For example, if you are cancelling your policy within 1 month after the free look period, you will get up to 75% of the premium amount as a refund. Check the below table to know how the refund works.

Note: The percentage of premium amount refund on cancellation may vary from one insurer to another.

Will I Get a Refund On Cancellation if I Have Made a Claim for the Policy?

You can cancel your health insurance policy anytime as told above. But policyholders will not get any refund if they have made a claim. This will apply both within and after the free look period.

How to Cancel your Health Insurance Policy?

Once you have realized that a plan is not the right fit for you, you will need to initiate the cancellation process during the free look period.

Top insurance companies provide an application form for the cancellation of policy under the free look period where you will need to fill in a few details like name of the proposer, address, phone number, email ID, policy number, the policy period, date of receipt of the policy, and reasons for cancellation. However, this form may not be available to all the insurers. In that case, you can contact them via other modes such as customer care, email, or physically visiting a branch.

Upon receiving the request, the company will offer you a solution in case you are dissatisfied with the terms and conditions of the current policy. But if you still want to cancel your policy, the process will be initiated, and the insurance company will refund you the premium accordingly. Apart from this, you will also receive an official email or letter confirming the cancellation of your health insurance policy.

In case you want to cancel your health insurance after the free look period, contact the insurer via phone, email, or a visit to the insurance company’s branch. The insurer will initiate the cancellation process, and you will get the refund amount depending on the tenure for which you received coverage.

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