The majority of people in India, especially in smaller towns and rural areas, did not care about getting health insurance for a long time. However, since the COVID-19 pandemic, a large number of people have started to realise the importance of health insurance. As more and more companies have started selling insurance plans online, it has become even more accessible for the public to research and buy insurance online. Many health insurance plans have a useful feature called a Free Look Period. In this article, we’ll take a look at what a Free Look period is and its benefits.
A Free Look Period in a health insurance policy refers to a period of time where you can freely change or cancel the health insurance policy you have purchased. The Insurance Regulatory and Development Authority of India (IRDAI) has made it compulsory for insurance companies to include a 15 day Free Look period for long term health insurance policies, meaning any policy with a term of 3 or more years. Anyone who buys a long term policy and is not satisfied with the terms and conditions, or finds a better alternative, can cancel the policy within the Free Look Period. The Free Look Period is a very beneficial feature for those who are confused about buying a health insurance plan.
The Free Look Period officially begins on the day the insurance policy papers are delivered to you. It is also important to note that all seven days of the week are counted in a Free Look Period, and not just the weekdays. This Free Look Period gives people time to study the health insurance policy in-depth and make sure that everything is according to their liking. While Free Look Period is mandatory for long term policies, insurance companies often give Free Look Policies for shorter plans as well. Some insurance companies also allow a 30-day Free Look Insurance Policy.
It can be hard to read the whole policy document when purchasing a plan, and customers usually only look for the benefits that the policy offers. However, many customers may end up missing out on the fine print in the policy. They can use the Free Look Period to go through the terms and conditions of the policy in-depth and if they are dissatisfied with something, they can cancel or change their policy.
There are specific steps you will have to follow in case you want to cancel your health insurance plan under the Free Look Policy:
Contact the insurance company.
You can send an official email to the insurance company or to the agent you bought the policy from, requesting the policy cancellation under the Free Look Period.
You will need to submit information such as policy papers, the registration date of the policy, the reason for cancellation of the policy and anything else the insurance company asks for.
Once the insurance company verifies all your documents, they will refund your money and your policy will be effectively cancelled. You may lose a small amount of money in the form of stamp duty costs, medical exam costs etc.
Here are the ways that a Free Look Policy in a health insurance plan can be helpful:
Gives the customers time to go through the policy in-depth and look for any discrepancies in the fine print.
In case the customers change their mind about the policy soon after buying, they have the option to cancel it within the Free Look Period.
Customers can get a refund for the amount they paid for the policy. Most other insurance policies do not have options for a refund.
When buying a long term or even a short health insurance plan from an insurance company, it is important to make sure that the plan has a Free Look Period. Health insurance has become a necessity in modern times, as the cost of healthcare has increased a lot. Treatment at a good hospital could put a significant dent in your finances, but having health insurance can give financial cover in case of medical emergencies. You can take a look at the various health insurance plans available at Finserv MARKETS and choose one that suits your needs.
You can cancel your health insurance policy within the Free Look period by contacting the insurance company and giving them all the relevant information and documents needed to cancel the policy.
A 30 day Free-Look Period refers to a period of 30 days when you can go through your health insurance policy and cancel the policy if it is not to your liking.
Most insurance companies have a Free Look Period of 15 days. However, some companies may offer higher periods of 30 days.
If your health insurance policy is under a Free Look Period, you can cancel the policy and get your money back. However, you may lose a small amount of money in fees, stamp duty etc.
Good treatment from private hospitals can be very expensive. If you do not have health insurance and face a medical emergency, you may lose a significant amount of your money for treatment or may need to take out a loan for the hospital fees.