What is the Free Look Period in Health Insurance?

What is the Free Look Period in Health Insurance?

The free look period is a special time period during which you can cancel your health insurance policy without paying any cancellation charges if you are not satisfied with it. It provides you an opportunity to verify your policy information such as coverage, premium, and terms & conditions. If you are not satisfied, you can return it and receive a refund.

In India, all health insurance companies must provide a free look period as per IRDAI (Insurance Regulatory and Development Authority of India) rules.

All health insurance plans, whether indemnity-based or benefit-based, come with a 15 or 30-day free look period. From April 1, 2024, all new health policies will have a 30-day free look period as per the latest IRDAI guidelines.

The free look period starts from the date your policy begins and lasts upto 30 days, depending on the policy terms. If you choose to cancel your policy during this time, the insurance company will refund your money after deducting costs for medical tests and postal charges.

This rule helps policyholders make a confident decision about their health insurance.

Free Look Period in Health Insurance – Key Features

The free look period in health insurance allows policyholders to cancel their policy easily. Here are its main benefits:

• Cancel Anytime, No Questions Asked: You can cancel your policy without giving any reason.
• Easy Refund Process: You'll receive your money back after a deduction of minor charges such as medical check-ups and admin charges.
• Available for New Policies: This feature is typically applicable for policies purchased recently, including those that cover newborns.
• Quick Cancellation Request: You only need to provide basic details like the policy start date, cancellation reason, and bank details for a refund.
• Less Paperwork: Just submit the original policy documents, premium receipt, and a cancelled cheque.

Benefits of the Free Look Period in Health Insurance

The free look period gives policyholders time to review their health insurance plan after purchase. It usually lasts upto 30 days and offers several advantages:

• Time to Review: You can check all details, including coverage, terms, exclusions, and optional benefits, without any rush.
• Easy Cancellation: If the policy doesn’t meet your needs, you can cancel it within this period without penalties or major financial loss.
• Peace of Mind: It ensures that you are making the right choice and not stuck with a plan that doesn’t work for you.
• Consumer Protection: If you find any errors or misleading terms in the policy, you can cancel without consequences.
• Prevents Future Issues: It helps avoid unnecessary claims from dissatisfied customers, benefiting both policyholders and insurance companies.
• Builds Trust: This feature promotes transparency and confidence in the insurance industry.

Important Things to Know About the Free Look Period in Health Insurance

Here are key points to remember about the free look period:

1. Time Limit

You can cancel or make changes to your policy within 30 days of receiving the policy documents. You must provide proof of when you got the policy.

2. How to Cancel

To cancel the policy, you need to submit a written request. Some insurers also let you apply online through their website.

3. Required Details

When canceling, you must provide details like the date you received the policy, agent information (if applicable), the reason for cancellation, and bank details for the refund. You can check the required details on the insurer’s website or ask customer support.

4. Necessary Documents

You must submit original policy documents, the first premium receipt, and a canceled cheque for the refund. If the original documents are missing, you may need an Indemnity Bond.

5. Refund Deduction

You won’t get a full refund. The insurer will deduct charges like

• Stamp duty fees
• A small amount for the coverage period
• Any medical test expenses paid by the insurer

How to Cancel a Policy During the Free Look Period?

Follow these simple steps to cancel your policy:

• Contact Support: Call your insurance agent or the customer care number of your insurance company.
• Provide Reason & Documents: Explain why you want to cancel and send a soft copy of the required documents.
• Share Bank Details: Give your correct bank account information to receive your refund on time.

Conclusion

The free look period in health insurance gives policyholders enough time to read and understand their policy. It allows easy cancellation with less paperwork, helping people make the right decision and avoid wrong plans. Overall, it helps them feel confident and satisfied with their health insurance choice.