Health Insurance Policy Cancellation Process

Cancelling Health Insurance: What You Need to Know

You can cancel a health insurance policy at any time of the policy term. However, the process of cancellation and its potential consequences vary depending on the timing of the cancellation. Usually, cancelling a Health Insurance policy during the initial period offers maximum flexibility. Have a look: 

• Cancellation Before Free Look Period 

All health insurance agencies offer a free look period ranging between 15 days and 30 days from the date of policy commencement. During this period, an individual can terminate a policy in case of dissatisfaction with the terms and conditions. Cancelling your policy during this period secures up to a 100% refund of the premium amount. However, the insurer will deduct the days you were covered along with the costs of stamp duty and medical tests.

• Cancellation After the Free Look Period 

Cancelling a medical insurance policy post-free look period changes circumstances associated with a refund. Once the free look period lapses, the policyholder will be subjected to a penalty for cancelling the policy. Moreover, this will also change the refund percentage depending on the policy’s activation period.

Take a look at the common refund percentages provided by health insurance agencies: 

Here is a step-by-step guide to the cancellation process: 

• Step 1: Review the Policy 

Begin by thoroughly reviewing your policy to understand the terms and conditions and ways to avoid penalties.

• Step 2: Get in Touch with Your Insurer 

Contact your insurance company's customer support team to inquire about the cancellation process and required paperwork.

• Step 3: Submit a Written Request 

Most health insurance companies prefer a written request mentioning your policy details and the intent behind the cancellation.

• Step 4: Confirm Your Request to Cancel 

Ask your insurer to acknowledge your cancellation request and revert with a confirmation mail along with the effective date for cancellation.

• Step 5: Inquire about Refund Initiation 

If you are eligible for a refund, then be sure to ask your insurer about that, too. Tell your insurer to send details about the refund amount and when you can expect to receive it.

• Step 6: Get Official Cancellation Letter 

Once your health insurance company has initiated the refund, you will receive an official cancellation letter or mail. With this, your health insurance policy will be successfully cancelled.

Every insurance company has a distinct set of rules regarding cancellation. By following the above-mentioned steps, you can safeguard yourself from heavy penalties and effectively cancel the policy. 

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