Free Look Period in Health Insurance

When investing in health insurance, ensuring that the chosen policy aligns with your requirements is crucial. The "free look period" in health insurance provides a window of opportunity for policyholders to thoroughly review their policy terms and conditions. This feature offers a safety net, allowing you to make an informed decision without immediate binding commitment. Introduced as a consumer-friendly initiative, the free look period ensures transparency and builds trust in the insurance process. By understanding its rules, benefits, and usage, you can make the most of this essential feature while avoiding potential pitfalls.

What is the free look period in health insurance?

The free look period is a designated timeframe during which a policyholder can review their newly purchased health insurance policy. Typically lasting 30 days from the receipt of the policy document, this period allows you to assess whether the policy meets your expectations and needs.

1. Review policy terms, conditions, and exclusions thoroughly.
2. Assess the coverage, benefits, and premium costs.
3. Cancel the policy within this period if unsatisfied, with a refund after minor deductions.
4. Submit reasons for cancellation along with supporting documents.

Reassess and choose a more suitable policy if needed.

Why is the free look period important for policyholders?

The free look period is designed to empower policyholders by offering a fair chance to evaluate their purchase. It is crucial for making well-informed decisions without undue pressure.

1. Ensures alignment of the policy with your health and financial needs.
2. Provides an opportunity to clarify terms with the insurer.
3. Safeguards against misunderstandings or mis-sold policies.
4. Minimises financial risk with the option to opt out.

Enhances consumer confidence in the insurance industry.

Things to remember about free-look period under health insurance

Here are the key points to keep in mind about the free-look period in health insurance:

• Time limit – You can avail the free-look benefit within 30 days of receiving the policy documents. To return or request changes, you must provide proof of the policy start date.
• Cancellation request – A written request is mandatory to cancel the policy. Many insurers also allow online cancellation through forms available on their official website.
• Required details – While cancelling, you need to share details such as the date you received the policy document, agent details (if purchased through one), reason for cancellation, and valid bank account details for the refund.
• Documentation – Original documents like the policy, premium payment receipt, and a cancelled cheque must be submitted. If originals are unavailable, an Indemnity Bond may be required.
• Refund amount – Insurers deduct certain charges from the premium refund, including stamp duty, proportionate risk premium for the coverage period, and expenses incurred for medical tests.