Free Look Period in Health Insurance & How Does it Work?

The unpredictability of life has made health insurance the need of the hour. The skyrocketing medical expenses are also another reason why every individual requires a health plan. On purchasing health insurance , a policyholder is offered with a free-look period to continue the policy in the long run. According to the Insurance Regulatory and Development Authority (IRDA), every insurance company must grant buyers with a free-look period of at least 15 days. Here’s everything that a policyholder must know about the free-look period in health insurance:

Factor to Consider Before Buy Free Look Period in Health Insurance

Duration

A majority of insurance companies provide the policyholder with a free-look period of 15 days. The period begins immediately from the date the company issues a policy to the insured. If a policyholder wishes to either make changes in the policy or cancel the entire plan, he/she must submit the receipt date of the insurance policy.

Permit

Policyholders must present the insurance provider with a written request to avail the free look period. Specific insurance providers offer buyers with online services. With an online facility, the permits for the duration can be submitted directly on the online portal of the insurance company.

Personal details

An individual must provide relevant information like the date of obtaining the policy, specific details about the insurance agent, and so on. If a policyholder opts for cancellation of the policy, he/she must mention a relevant reason for the cancellation. In case of a premium refund, a customer must provide the insured with his/her bank details. Moreover, a policyholder must attach a revenue stamp along with their signature.

Paperwork

Every individual must compulsorily provide the insured with documents required for health insurance purchase and the original policy document. However, if a policyholder doesn’t have an original document, they can submit an indemnity bond. For a refund, they should issue the receipt of the first premium payment along with a cancelled cheque.

Premium

When a policyholder decides to cancel the health insurance policy, they can acquire a refund of their health insurance premium upon the cancellation. The refund is provided to an individual after the following deductions have been made:

• Medical test expenses.
• Expenses incurred on stamp duty.
• Proportionate risk premium for the tenure of the coverage.

Conditions

A policyholder must opt for a health insurance policy, which provides coverage for a minimum period of 3 years. Besides, an 18% GST is applicable to financial services from 1^st July 2017.  The premium depends on specific factors like age of the policyholder, residing location, and GST rates. To sum up, health insurance plans cover medical contingencies, which tend to disrupt the financial condition of the policyholder. However, the policy must be thoroughly examined and returned, if it does not meet all your requirements. Bajaj Allianz General Insurance provides an online comparison of health insurance premium rates with the help of an online calculator. Additionally, it offers the buyers with a hassle-free claim settlement procedure and cashless benefits of hospitalization.   *Standard T&C Apply *Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms and conditions, please read the sales brochure/policy wording carefully before concluding a sale.