Free-look Period in Health Insurance

What is the Free-look period in Health Insurance?

The Free-look period is the stipulated time period in which a new Health Insurance policy holder can cancel the policy, free from penalties.

During the Free-look period, in case the Insured has dissatisfaction with policy terms and conditions, he can cancel the policy within the stipulated time of 30 days from the date of receipt of Policy document at the insured end . Free-look period is not available for the portability and renewal policies.

An overview of the Free-look period

The Free Look Period shall be applicable on new Individual Health Insurance Policies and not on renewals or at the time of porting/migrating the policy.

The insured person shall be allowed free look period of thirty days from date of receipt of the policy document to review the terms and conditions of the policy, and to return the same if not acceptable.

Free look period in Health Insurance India

The free look period starts on the day you get your policy documents, whether in a physical or digital form. If they are physical documents, you will get a free look period of 30 days to review the policy patiently. If they are only digital documents, you will get a free look period of 30 days.

How do Free-look periods work?

lf the insured has not made any claim during the Free Look Period, the insured shall be entitled to

i) A refund of the premium paid after deducting any expenses incurred by the Insurance Company for medical examination of the insured person and the stamp duty charges
ii) Where the coverage has already commenced and the option of return of the policy is exercised by the insured person, a deduction towards the proportionate risk premium for period of cover shall be made by the company.

Things to Consider about the free look period

Here are a few things to know about the free look period:

The free look period is generally 30 days, but it can differ depending on the insurer.
The free look period begins on the day you obtain the documents of your policy.
You could cancel your policy by contacting the customer care number of your health insurance provider, then submitting a handwritten request, or returning back the insurance policy.
You will not obtain a full refund of the premium you paid. Now, the insurance provider will deduct a few costs, like a prorated risk premium, stamp duty, and any expenses incurred for medical tests.
However, you must provide the correct contact details in the application form to ensure that you don’t miss any important data.
You should return back the health insurance policy yourself rather than relying on an agent to avoid any further delays.

Free look period in health insurance example

Lets discuss the Free look period in a health insurance example. Mr. Raam buys a 25 lakh top health insurance policy online. Later, he realizes that it is not sufficient for his needs. So, he can use the free look period to cancel the plan and receive a refund, and then he can buy a 50 lakh plan instead.

Conclusion

Please ensure to completely read the policy terms and conditions before you choose and buy the best policy. By the time you purchase a Health Insurance policy, you are quite familiar with the important features of your insurance cover. Free-look period is a customer-protection feature that gives you a chance to review every policy detail and understand more about your coverage.

This paves the way to get a refund of the initial premium and switch to other suitable policies catering to your needs. Hence, Insurance policies with a Free-look period are usually an advantage to the customer.

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FAQ

What is the IRDA free look period for health insurance?

The Insurance Regulatory and Development Authority of India (IRDAI) permits a free look period for life insurance policies and health insurance policies. As per IRDAI, the Health insurance policy type can have a free look-up period of at least three years.

What is the free look period in Star Health insurance?

In Star Health Insurance, the free look period is 30 days from the date of obtaining the insurance policy. This time period permits the policyholder to review the terms and conditions of the policy and cancel that policy if they are not satisfied. You may wonder free look period how many days.

What is the health insurance grace period for payment?

In health insurance, the grace period refers to the time following the due date when a policyholder can pay their premium without losing coverage.