Free-look Period in Health Insurance

Free-look Period in Health Insurance 

The Free-look period is the stipulated time period in which a new Health Insurance policy holder can cancel the policy, free from penalties.

During the Free-look period, in case the Insured has dissatisfaction with policy terms and conditions, he can cancel the policy within the stipulated time of 30 days from the date of receipt of Policy document at the insured end . Free-look period is not available for the portability and renewal policies.

An overview of the Free-look period

The Free Look Period shall be applicable on new Individual Health Insurance Policies and not on renewals or at the time of porting/migrating the policy.

The insured person shall be allowed free look period of thirty days from date of receipt of the policy document to review the terms and conditions of the policy, and to return the same if not acceptable.

Free look period in Health Insurance India

The free look period begins when you receive your policy documents, either as a hard copy or digitally. In both cases, you have 30 days to review your policy and decide if it meets your needs.

How do Free-look periods work?

If you have not made any claim during the free look period, you are entitled to the following benefits:

1. You will receive a refund of the premium you paid, minus any expenses the insurance company spent on your medical examination and stamp duty charges.
2. If your coverage has already started and you choose to return the policy, the company will deduct a proportionate risk premium for the period you were covered.

Things to Consider about the free look period

Here are a few things to know about the free look period: 

• The free look period is generally 30 days, but it can differ depending on the insurer. 
• The free look period begins on the day you obtain the documents of your policy. 
• You could cancel your policy by contacting the customer care number of your health insurance provider, then submitting a handwritten request, or returning back the insurance policy. 
• You will not obtain a full refund of the premium you paid. Now, the insurance provider will deduct a few costs, like  a prorated risk premium, stamp duty, and any expenses incurred for medical tests. 
• However, you must provide the correct contact details in the application form to ensure that you don’t miss any important data.  
• You should return back the health insurance policy yourself rather than relying on an agent to avoid any further delays.  

Free look period in health insurance example

Lets discuss the Free look period in a health insurance example. Mr. Raam buys a 25 lakh health insurance policy online. Later, he realizes that it is not sufficient for his needs. So, he can use the free look period to cancel the plan and receive a refund, and then he can buy a 50 lakh plan instead. 

Conclusion

Please ensure to completely read the policy terms and conditions before you choose and buy the best policy. By the time you purchase a Health Insurance policy, you are quite familiar with the important features of your insurance cover. Free-look period is a customer-protection feature that gives you a chance to review every policy detail and understand more about your coverage.

This paves the way to get a refund of the initial premium and switch to other suitable policies catering to your needs. Hence, Insurance policies with a Free-look period are usually an advantage to the customer.