Health Insurance 101: Free Look Period
The day the policy materials are provided to you is when the free-look period in insurance formally starts. It’s also vital to remember that the entire week, not just the weekdays, are counted. People can thoroughly review the health insurance coverage during this free-look Period to make sure that everything is to their satisfaction. Insurance firms provide this option for short-term health insurance plans as well, despite the fact that the free-look period is only required for long-term coverage.
When buying a plan, it might be challenging to read the entire policy paperwork; instead, buyers frequently focus solely on the advantages of health insurance coverage. However, this causes them to overlook the policy’s tiny print. They can thoroughly review the policy’s terms and conditions throughout the free-look time, and if they are unhappy with anything, they can cancel or modify their insurance.
It’s crucial to first comprehend the fundamental components of this feature in order to have a better understanding of the free-look period in health insurance. A sample of some of them is shown here:
- Time frame
There is a specific time frame within the free-look period during which you must submit a request to cancel the policy. For insurance received by non-electronic means, the Insurance Regulatory and Development Authority of India (IRDAI) has established a time limit of 15 days from the date of receipt of the policy document. This deadline is 30 days from the date of receipt of the policy document in the event of electronic policies. #
- Cancellation Request
It is necessary to submit a formal request in writing to the insurance provider in order to start the cancellation of a policy during the free-look period. Depending on the insurer, you might need to use an offline approach or an online method to send the written request.
- Information needed to cancel
There are a few crucial items you must include in addition to the written request for cancellation. This includes the day you got the policy documents, the reason you’re cancelling, the specifics of your bank account where the reimbursement will be sent, and, if applicable, information about the insurance agent.
- Required documents for cancellation
You might need to provide documentation like your insurance contract, premium payment receipts, and a leaf from a cancelled check, among others.
- Premium Refund
The cancellation request will be authorised once the insurer has confirmed the information and papers provided. You will receive a refund of the health insurance premium you paid for the coverage after a specific percentage has been taken off. Stamp duty fees, medical exam fees, and the premium for the number of days the policy was in effect are all included in the amount withheld. You can use a health insurance premium calculator to understand the costs involved. *
The free-look period’s advantages
Those wanting to purchase health insurance in India coverage have found the free-look period to be of great assistance. It has a number of advantages, some of which are detailed below:
- Gives you time to carefully read the policy and check for any inconsistencies in the small print.
- As long as the health insurance is still within the free-look period, they have the ability to cancel it if you change your mind about it soon after purchasing.
- You have the option to upgrade to another policy or switch to a different policy of their choosing throughout the free-look time.
- If you decide to cancel the insurance during the free-look time, you will receive a refund for the amount you paid.
Make sure the plan provides a free-look period before purchasing a long- or short-term health insurance plan from an insurance provider. And once you do decide on a policy, use a health insurance premium calculator to understand the costs involved.
* Standard T&C Apply
** Currently, there are 2 tax regimes in India – new and old. To get the tax benefit you desire, choose the correct one after consulting an expert. You can opt for a regime change during the next financial year.
# Visit the official website of IRDAI for further details.
## All savings are provided by the insurer as per the IRDAI-approved insurance plan. Standard T&C apply
Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.
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