Insurance is not very different from any other commodity you buy and from which you expect long-term returns. So, just like a lot of other such commodities, it is only fair for you to have the option of a trial run or something like a return policy to ensure that the service is exactly what you require. The best part is that there indeed exists a provision of this nature called the free look period when it comes to health insurance.
What is a Free Look Period in Health Insurance?
As you may be already aware, health insurance can come in a number of forms. In any case, you must ensure that the health insurance policy you picked serves your purpose. The terms you pick, the kinds of returns you are offered, the insurance amount you receive - all of these depend on several factors. Your health insurance needs to be precisely cut out to fit these parameters to your convenience.
There is an IRDAI-approved provision in place just to ensure that this genuine need is met. Irrespective of the nature of health insurance you opt for, you are entitled to a free look period of 15 days. Some lending institutions can also be predisposed towards bumping it up to a 30-day period, considering your convenience. The idea is to enable you to discard a policy if you feel that it does not serve your interest. During the trial period, you are in a position to return the insurance policy if the health insurance benefits or coverage do not seem adequate.
How Does a Free Look Period in Health Insurance Work?
The concept of a free look period is mainly curated for your benefit so that you can take your time to figure out if your health insurance policy is the right fit for you. There is, of course, a regulation mechanism in place to ensure that this provision is adequately provided to clients and to prevent abuse.
Getting to Know the Logistics
Health insurance plans and their free look periods are all ultimately subject to the rules of the specific lending institution. Hence, the free look period can vary in length. However, the convention is to offer a free look period for up to 15 days starting from the day of the purchase of the health insurance plan.
Requesting the Benefits of the Free Look Period
Based on the system or the degree of technical dependence of the insurance provider, you will have to provide a written or online application. Please note that the free look period is not offered automatically, and you do need to submit a request to that end to be able to avail of it.
Providing More Information as Required
As the policyholder, you will also be required to provide a certain amount of additional information as well. This could include the identification of your advisor or information regarding the related dates. All of this will contribute to a smoother availability of the free look period and the benefits that come with it.
Verifying Documents
You will also be required to produce the required documents to verify all and any information that you may provide or claims that you may make at the time when you buy health insurance and apply for a free look period. It is necessary to back your health insurance claims with sufficient evidence. Additionally, the technicalities also need to be observed to ensure a smooth refund process, in case there is such a possibility.
Returning or Keeping the Policy
Once you have obtained the provision of the free look period in health insurance, you are in a position to experience the way the insurance will work henceforth and detect any potential inconveniences.
Dealing with the Terms and Conditions
Through this entire procedure, you have to keep in mind that the insurance provider is bound to have certain codified and implied terms of conditions, which you have to be both respectful and mindful of in order to avoid any unnecessary hassle.
How Does the Free Look Period Make Insurance Easier for You?
There are a number of ways that the free look period of your health insurance can prove helpful to you:
- There always remains the possibility of misunderstanding while getting health insurance plans. In that case, the free look period ensures that you get to understand and verify the claims.
- The trial period also gives you the opportunity to discuss the health insurance policy with your advisor or agent after having experienced it to some extent so that the discussion is overall better-informed.
- It also essentially gives the policyholder a second nudge to go through the fine print and familiarise themselves with the long-term financial commitment they are about to enter into and withdraw themselves from it if they sense it to be something that is not suited to their immediate needs or situation.
How Can You Cancel Health Insurance in a Free Look Period?
Based on the workings of your health insurance provider, you will be required to send in an online or offline request for the cancellation of your health insurance plan. You will also have to supplement the cancellation request with the required documents and information, to facilitate a smooth process.
Upon cancellation, you are entitled to a refund. Hence, you must also provide your bank details to enable the refunded amount to come through. Additionally, policyholders are generally asked for a coherent reason behind the health insurance cancellation plea, so make sure that you have a valid reason to cite. You have to ensure that you carefully refer to the instructions from your insurance provider in order to avoid any unwanted complications.
However, even if you cancel your policy within the free look period, certain charges will be incurred. These include the costs of medical tests and service charges for getting the policy, including stamp duty.
Can You Cancel Your Health Insurance After the Free Look Period?
The entire point of the free look period right after taking health insurance is to minimise the chances of your dissatisfaction with your health insurance plan. You are entitled to be able to return your health insurance policy within the free look period if it does not seem to align with your needs and requirements. And yes, you can cancel your policy after the free look period is over. In that case, you no longer get a refund of the premium.
Final Take
Before taking health insurance, policyholders should go into extensive research and compare the policies of different lending institutions. However, it is equally important to consider the free look period and make thought-out decisions to ensure your complete satisfaction with the health insurance. After all, this is your ultimate chance to test your compatibility with your health insurance!
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