Free Look Period in Health Insurance

Key Features of the Free Look Period in Health Insurance

Given below are the key highlights of the free look period for insurance:

1. Tenure: The policyholders have the liberty to review and cancel the health insurance policy during the free look period. The time limit of a free look period is 15 days from the date of receipt of the insurance policy.
2. Cancellation Request: If the policyholders are not satisfied with certain terms and conditions of the insurance policy, they can intimate the policy cancellation request to the insurance provider. The cancellation request can be sent online or offline.
3. Submission of Details: The policyholders should submit the following details while intimating the cancellation request to the insurance provider:  Date of receipt of the insurance policy,  A valid reason for the insurance policy cancellation, Bank account details of the policyholder.

1. Documentation for Policy Cancellation: The policyholders must submit copies of the relevant documents needed to cancel the policy. The documents needed to submit are the cancelled cheque, the receipt of the premium paid, etc.
2. Refund: The insurer will refund the money to the policyholder by deducting some amount, including medical test fees, stamp duty charges, etc. The insurance company will verify certain terms and conditions for the free look period before initiating the refund amount.

Benefits of a Free Look Period

Most policyholders tend to ignore the policy terms and go through the benefits and features highlighted on the website. They often come to know about it when it's too late to request cancellation.

The benefit of a free look period is to cancel the insurance policy and claim the refund amount from the insurance provider. The free look period provides time for the policyholders to go through the insurance policy's terms and conditions thoroughly.

How to Cancel a Policy within a Free Look Period

Given below is the step-by-step procedure to cancel a policy within a free look period:

1. Apply for the policy cancellation during the free look period through email and provide a valid reason to the insurer.
2. Submit the relevant documents.
3. The insurance provider will go through the request and verify your application.
4. Once the verification is complete, the insurance provider will cancel the policy and refund the amount that you have paid.

Eligibility Criteria for Free Look Period

The free look period is available only to new policyholders, not during renewals. It applies if the policy was purchased through distance marketing or online channels.

Documents Required to Cancel a Policy During Free Look

To cancel a policy during the free look period, submit the original policy document, a written cancellation request, and a valid ID proof. Some insurers may also ask for a cancelled cheque and medical reports, if applicable.

Free Look Period vs Grace Period 

The free look period allows new policyholders to review and cancel their policy within a specific timeframe, usually 15 days, for a refund. In contrast, the grace period is the extra time given to pay renewal premiums after the due date without policy lapse.

Common Mistakes to Avoid During Free Look Period 

Avoid delaying the review of your policy documents, as the free look period is time-bound. Also, ensure all required documents are submitted accurately to prevent rejection of the cancellation request.

How to Write a Free Look Period Cancellation Letter

Start the letter by mentioning your policy number, date of issuance, and reason for cancellation. Request a refund and attach necessary documents like ID proof, policy copy, and a cancelled cheque for processing.