Understand Free Look Period in Health Insurance for Hassle-free Coverage.
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Sometimes, people may purchase a health insurance plan without adequate research and understanding of what their chosen policy offers. This often translates to buying a plan that may not suit their requirement and lead to unanticipated out-of-pocket expenses during claims. To tackle this common problem, The Insurance Regulatory and Development Authority of India (IRDAI) directed insurers to offer a feature called the Free Look Period in health insurance policies. In this article, we will shed light on the Free Look Period, how it works, and the benefits it offers.
The Free Look Period, is a time period during which you are free to evaluate the policy purchased from a health insurance company. If you do not like the policy or discover certain clauses that you feel are not appropriate for you, you can cancel the policy. Depending upon their rules and regulations, the insurer may or may not deduct some basic expenses before returning the money you paid as insurance premium.
You must carefully review the inclusions and exclusions mentioned in the policy document to get a basic understanding of the plan. If the policy does not offer the features promised by the insurer during the purchase journey and you want to get a refund, you must notify the insurance company in writing along with the reason for cancellation. Remember that you must cancel the policy during the free look time to receive a full refund.
You must first be qualified for the Free Look Period feature. This means you'll need to get a health insurance plan that is valid for at least one year. Secondly, you must return the policy within the Free Look Period, which is typically 15 days. The insurance company may not allow a refund if you wish to cancel the policy after 15 days.
Here's an example of how the Free look Period works.
Mr A bought the 25L ACKO Platinum Health Insurance Plan online. He was in a hurry, so he could not analyse his requirements and went for the 25 lakh sum insured plan. However, after thinking about his decision on the weekend and discussing it with his family, he realised that the 25-lakh sum insured won’t be enough. Thus, he decided to take advantage of ACKO’s Free Look Period feature, cancelled his 25 lakh policy, and received a refund. And then proceeded to purchase the 50L ACKO Platinum Health Insurance Plan instead.
The main benefit of the Free Look Period in insurance is the ability to cancel the policy without losing the paid premium. It enables you to cancel the policy and save money that would otherwise have been spent on a policy that does not meet your needs. It is wiser to cancel the policy and receive a full refund than being stuck with it for a year, even after knowing it is not useful for certain claims.
Following are the features of the Free Look Period.
Typically, the time limit for the Free Look Period is 15 days from the policy issuance date. If you don’t like the benefits or the features provided by the policy, you have two weeks to cancel it and get a full refund. You may not have the option to get a full refund after the Free Look Period ends.
If you are unhappy with the policy and wish to cancel it under the Free Look Period, you must contact the insurance company and submit a cancellation request. This procedure can be done online or offline, depending on the insurer's rules.
When submitting a cancellation request, you must provide the following information.
1. Policy start date
2. The reason(s) for insurance cancellation
3. Bank account information for transferring the refund
To cancel the policy, you must produce specified original documents or copies of the documents. These documents could include a premium payment receipt, a cancelled cheque, etc. In the absence of the appropriate documentation, the insurer may request that you provide an Indemnity Bond.
Here are the steps highlighting how to cancel your health insurance policy in the Free Look Period.
Step 1: Contact ACKO through the customer care number provided in the app.
Step 2: State your reason for cancelling the policy and provide the necessary documentation.
Step 3: Share your bank account details to receive the full refund.
Note: You need to upload soft copies of the required documents through the app or via email, as requested by our customer care executive.
Yes, the ACKO Platinum Plan has the Free Look Period Feature of 15 days from the policy issuance date.
No, the Free Look Period only applies to first-time purchases, not renewals.
Cancelling the policy during the Free Look Period is only possible if you have not raised any claims.
Yes, you can terminate your insurance policy once the Free Look Period has expired. However, you may not receive a full refund from the insurance company.
A health insurance policy offers a Free Look Period benefit so that you can cancel the policy for a valid reason during a specified time frame.