All About Free Look Period in Health Policy

Most of us are no expert when it comes to health insurance. We get it, it’s not that simple as it's not something to deal with daily. Hence, little attention is paid to what it is, its utility, benefits, limitations and the core health policy terms and conditions. 

Ask yourself, when you bought your health insurance policy (read 5 things you must check), did you do enough research?

The answer for most people would be no. They don’t have a basic understanding of what their health plan offers. So what happens is, they end up buying a policy that doesn’t fit their needs and requirements. This further leads to increased out of pocket expenses at the time of claims. 
They may realize later that the policy conditions are not suitable for them. 

Addressing this concern, the Insurance Regulatory and Development Authority asked health insurance companies to introduce the concept of Free Look Period in health insurance policies.  

What is the Free Look Period?

The free look period is a period during which you can analyze your health policy deeply to determine if the policy actually bought is a fit for your needs or not. 
When you evaluate the health policy terms & conditions, you might feel that certain clauses do not suit your needs or are inappropriate for you. In such a case, the free look period allows you to have the option to cancel or return your health policy. 

Going through the inclusions and exclusions thoroughly is important to develop an understanding of your policy benefits. If you feel the benefits are not as promised by your insurer during the purchase decision, you can simply return it after a thought-through review. 

Time limit of the Free Look Period

Typically, the free look period is of 15 days (may extend to 30 days by some insurers) from the date of policy inception or commencement which means the date on which you had received your health policy documents. 

Remember to cancel or return the policy within the Free Look Period to get the refund of premium paid by you. 

Policy cancellation request and requirements

Now that you're not satisfied, what's the next step? You can choose to cancel your policy within the free look period. 

For cancellation, simply contact your insurance company and submit a written request to your insurer clearly stating the reason for cancellation. Else, you can submit a form as available on your insurance company's website. The process is dependent on the insurance company's rules. 

For the cancellation process, you will need to submit the following:

• Proof of date of receiving the documents, i.e., policy start date
• Receipt of premium paid
• Cancelled cheque or bank information to process the refund

Refund in case of cancellation

In case you decide to cancel the policy and submit a cancellation request, you’ll be entitled to a refund of the amount paid as premium. However, your insurance company may deduct some basic expenses incurred on stamp duty, pre-medical tests, proportionate risk premium, etc. 

Conclusion

To conclude, the Free Look Period is a great benefit offered to policyholders by the health insurance companies. If you don’t know enough about health policies before purchasing, you still have a chance to understand its terms and clauses and make a decision for yourself. 

And, if you’re not happy with the policy, you simply have the option to cancel or return it - and still get a refund!