Free-look Period in Health Insurance

• Written by Ritika Malik

  Reviewed by Munmi Sharma

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Let’s imagine you have recently bought a health insurance plan for your family. Initially, the deal seems great to you; but while going in-depth, you find it insufficient for your requirements. What to do now? Will you be able to return the policy or  will your premiums go all waste?

Worry not we got you covered! There is a provision under which you can cancel your policy even after paying the premiums.

Insurance is a vast concept with so many features and technical terms that may leave you astounded. One such term or feature is the free-look period that has great significance. A thorough knowledge of these jargons is essential to make the most of your health insurance plan. This blog is all about the free look period in health insurance and how it works. Let’s begin!

What is a Free-look Period?

Free-look period is a period in which you can discontinue the health insurance policy in a time frame of 15-30 days. As per the guidelines given by the Insurance Regulatory and Development Authority of India (IRDAI), if you are not happy with your existing health insurance policy or the terms and conditions related to it, you can review your insurance plan and terminate it within a specified period. 

Here is an example to make you better understand the concept of free look period in medical insurance:

Rohan recently purchased a health insurance policy but shortly realised it doesn’t meet his financial and health needs. Within the 15-day free look period, he re-examined the terms and got in touch with the insurer to request for the cancellation. The insurer after verifying the decision processed the request  immediately. The amount was refunded to Rohan, however, there was a small deduction for administration fees and medical assessment expenses. With free look-period, Rohan could explore other policies fulfilling his needs without monetary damage ensuring improved healthcare coverage. 

Why Should You Consider a Free Look Period in Health Insurance?

Here’s why considering a free look period in health insurance is beneficial: 

• It enables the policyholder to thoroughly assess the coverage, exclusions, terms, and conditions to make an informed decision.
• The policyholder can cancel the policy anytime within the specified timeframe, if it does not meet their expectations, such as financial goals or medical needs, without incurring financial loss. 
• Free look period in health insurance assures policyholders that they are investing in an accurate plan without lasting adherence to an unfitting policy. 

Features of a Free Look Period in Health Insurance 

Some of the significant features that free look period in health insurance offers, making it a boon for policyholders, are:

• No Questions Asked: As soon as the policyholder wants to cancel the policy, they can do it without giving any justifications.
• Simple Refund Process: The refund process is straightforward, as minimal charges are deducted, including medical assessment expenses and administrative fees, depending on the policy terms and conditions.
• Applicability: Free look-up period in health insurance is usually applicable to new policies, including those that offer newborn coverage.
• Quick Submission: The submission request for policy cancellation is effortless as the policyholder has to provide the basic information such as policy start date, reason for cancellation, and bank amount details for the refund. 
• Minimal Documentation: The documentation process is minimal, as the policyholder needs to submit only the original documents, premium receipt, and a cancelled cheque.

How Does the Free-look Period Work?

As mentioned above the free-look period is introduced to help the insured to return the policy if it doesn’t fulfill their purpose of buying insurance. Health insurance policies have a free-look period of 15-30 days to review a new health insurance policy. If the terms and conditions are not as per your needs, you can return the policy during this period. The premium will be refunded as per the policy terms and conditions after making the following deductions:

• Proportionate risk premium for the coverage period 
• Medical expenses in case of a pre-policy medical test
• Stamp duty charges

Mentioned below are specific details related to the free-look period:

Time limit: The benefits in the free-look period can only be availed within 15 days from when the policy documents have been received. During this period, you can relook for some changes in the policy or cancellation.

Request to cancel the health insurance policy: To cancel the policy, a request has to be made. You can initiate this process by filing an online form downloaded from the company’s official website.

How to Cancel a Policy During Free Look Period in Health Insurance?

Cancelling health insurance policy during the free look period is simple. Here are the steps that a policyholder must follow: 

• Contact your insurance service provider to notify you of your willingness to cancel the policy within the specified period.
• In the next step, the policyholder must complete the form given by the insurer and provide all the required information.
• The policyholder should attach mandatory documents like policy copies and receipts. 
• Once the insurer receives the application and validates the supporting documents, it will cancel the policy and refund is initiated after deducting the necessary charges. 

Final Word

A health insurance policy helps you in financial planning. However, what if you find that specific terms and conditions are not as per your requirements? You have an option for a free-look period in which you can review the terms and conditions as mentioned in the health insurance plan to assess whether it is helpful. So, make an informed decision and stay covered!

>> Also Read Health Insurance Portability

Disclaimer: Plan features, benefits, coverage, and underwriting of claims are subject to policy terms and conditions. Please refer to the brochure, sales prospectus, and policy documents carefully.