Understanding and Taking Maximum Advantage of the Free-look Period in Your Health Insurance Policy

Given how erratic life may be, health insurance is essential. Another reason why everyone needs a health insurance plan is the ever-increasing cost of medical care. You would be given a grace period after purchasing health insurance to decide whether or not to keep the policy. This period is known as the free look period.

All insurance providers must provide prospective customers with a 15-day “free look” period, as mandated by the Insurance Regulatory and Development Authority (IRDA). Visit the official website of IRDAI for further details.

Free look period: Key highlights

Here’s everything you need to know about the free-look period while deciding to buy a health insurance plan for your family:

• Duration

Most insurance companies give you 15 days to review the policy without paying anything. The time starts as soon as the company issues the policy to you. If you wish to make changes to the policy or cancel the whole plan, you must submit the document that has the receipt date of the policy.

• Permit

You will have to send a written request to the insurance company to avail of the free look period. Some insurance companies might offer online services as well. With an online option, you can apply for the permit directly using the insurance company’s online portal.

• Personal details

You must provide relevant information, such as the date of receipt of the policy and specifics about the insurance agent, among other things. You must have a valid reason for cancellation if you decide to get your policy terminated. To get a refund on a premium, you must also submit your bank details. You must also sign and put a revenue stamp on the policy document.

• Paperwork

you would be expected to furnish the insured with health insurance purchase paperwork and the original policy document. If you, by chance, have lost the original paperwork, you may submit an indemnity bond instead. For a refund, you should submit a cancelled check and the receipt for the first premium payment made by you.

• Premium

You can receive a refund on your health insurance premium if you decide to discontinue your policy. The amount shall be refunded after making certain deductions, such as the cost of medical examinations before the policy is issued, stamp duty charges, etc.

If you are planning to make any changes to the policy, then you can use a health insurance premium calculator to determine the premium you are likely to pay for your new policy.

Cancelling a policy during the free look period

The following are the steps that you need to take to cancel a policy during the “free look” period:

Step 1: Send a written request to the insurer stating a good reason to cancel your policy within the free look period.

Step 2: Submit the necessary paperwork.

Step 3: The insurance company will review your request and check your eligibility for coverage.

Step 4: Once the checks are completed, the insurance company will cancel the policy and refund the premium paid after certain deductions.

To conclude, most of us fall prey to the advertised perks of health insurance while buying one and barely pay attention to the fine print. We tend to regret our decision only when it gets too late to cancel. The advantage of a free-look period is the ability to cancel insurance coverage and receive a reimbursement from the insurance provider. The free look period allows you to thoroughly review the terms and conditions of the insurance contract.

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