Cooling-off Period in Health Insurance

When looking to purchase new health insurance coverage, individuals who have recently recovered from specific illnesses, such as COVID-19, may hear the term "cooling-off period". All significant insurers give the policies a cooling-off period. This is relevant to those looking to purchase their health insurance policies who are unwell or have recently recovered from a disease.

An insurance company-determined "cooling-off period" is a time frame during which such buyers are not permitted to purchase health insurance. However, after the assurance of their health condition, they can apply for it.

This period differs from a waiting period in that it is essentially a period following recovery during which a person cannot yet get health insurance. A person will fully recover from their disease during this time, which can last anywhere from a few days to a few months, and at that point, they will be healthy enough to be covered by insurance. The majority of India's major health insurance policies have this form of the cooling-off period.

Importance Of Cooling Off Period

Before customers purchase a health insurance policy, a cooling-off period allows the insurer the opportunity to properly and accurately assess their health.

You might be required to submit a negative report and go through a physical examination during this waiting period. Some insurers could also want you to supply medical records and reveal any health concerns you've had in the last 6-12 months. Making sure that a person's health is in good shape for risk assessment purposes, is crucial.

Insurance underwriters will then decide whether to issue a policy right away or to delay it for a cooling-off period based on the circumstances. It is crucial to remember that this does not affect the cost of health insurance.

Why is the Cooling-off Period Used? 

Here are some of the main justifications for implementing such a cooling-off period in case you're wondering why:

1. When there is no proof that a patient's health would be negatively affected by an illness over time, the cooling-off period comes into play. The underwriting processes for new policies contain a flaw, for instance, as there have been numerous incidences of cardiovascular, pulmonary, and heart-related issues discovered in people with COVID-19.
2. A suitable time frame is provided by the cooling-off period for the emergence of any additional unanticipated disease-related difficulties that might affect the issuance of an insurance policy.
3. This time frame is essential for ensuring that the customer's condition is evaluated accurately and fairly.

Difference Between Cooling-off Period and Waiting Period

People might get confused between cooling-off period and waiting period and mistakenly interchange the both. The following explanation will make the difference between the two clear:

1.Cooling off period

• After you have recovered from a disease like COVID-19, there is a brief window of time during which you might not be able to purchase coronavirus health insurance. 
• It could last for 2 weeks or 3 months.
• You cannot apply for any health insurance during this period. 

2. Waiting Period

• You get insurance coverage first, then this happens. It refers to the amount of time you must wait before submitting a health insurance claim for any or all health insurance benefits.
• There is typically a first-time waiting period as well as distinct waiting periods for pre-existing conditions, maternity benefits, and some other illnesses.
• Depending on the condition and the health insurance company, the waiting period's terms and conditions will change.

The Function of the Cooling-off Period in Health Insurance

It gives us a chance to properly and accurately assess the customer’s health throughout this cooling-off period. There is now a “cooling-off” waiting time for COVID-19 survivors who want to purchase health insurance coverage from selected health insurance providers in India.

To reduce the risk of a relapse, those who have contracted the virus must wait until they are completely well before purchasing health insurance. Verifying that the applicant's basic medical condition has improved and does not constitute a high danger is crucial. Please note that this does not affect health insurance premiums.

Moreover, there is no distinction between those who have had vaccinations and those who have not. It indicates that a cooling-off time will be applied to all standard health insurance policies to evaluate and decide whether to accept an insurance application.

Therefore, if a person with a medical condition applies for health insurance coverage, the application is reviewed by the insurer's underwriting policy. And if the person is found to have an acute infection, approval is only given after the illness is treated.

Cooling-off Period For Various Companies

Each company has its specific cooling-off period and it varies from one another. Here is a list that shows the cooling-off period of various companies.

Conclusion

To utilise the insurance's advantages as soon as you become ill, you must purchase health insurance before the virus strikes you. If you have not yet contracted the virus, it is a great idea to purchase insurance. With the insurance, if the need arises, you can deduct the expenses you incur while recovering. Read the guidelines carefully before purchasing the policy, and make sure it covers infections. Discrepancies that could result in the claim being rejected can be avoided by disclosing all the information at the time the policy is issued. Be sure to timely renew your health insurance and determine the maximum claim you are eligible for. In the event of a medical emergency, having health insurance can prevent you from facing significant financial obligations.

Read more -

• Waiting Period Clause in Health Insurance
• 10 Reasons Why Should You Buy Health Insurance Early in India