Health Insurance Cancellation Policy: What You Need to Know?

A health plan is a must if you want to protect yourself against the high medical costs. Apart from purchasing a policy for yourself, you can also purchase a family floater plan to make sure that even your family members receive the health coverage. If you have purchased health insurance and for some reason want to cancel the same, there are a few rules that you should be aware of.While it is possible to cancel your health insurance anytime, the refund you receive will depend on when you cancel the policy. Let us have a look at the health insurance cancellation policy in detail-

The first 15 days of an offline policy and the first 30 days of online policy is known as the free-look period . If after receiving the policy documents you do not agree to any of the terms, you can cancel the policy within the free-look period and receive up to 100% of the policy coverage.However, the insurance company will deduct the premium for the number of days you were insured as well as any costs incurred by them for your medical tests and stamp duty.

You can also cancel your health insurance policy after the free-look period. However, you will not receive 100% of the premium refund. If the policy is cancelled-

• Within 1 month- 75% of the premium refunded
• Within 3 months- 50% of the premium refunded
• Within 6 months- 25% of the premium refunded

You can also cancel the policy anytime between 6 months and the validity of your policy. However, you will not receive any refund once the policy is 6 months old.

Now that you know the health insurance cancellation laws , here are the steps for cancelling a policy-

• You can get in touch with the support department of the insurance provider to submit your cancellation request
• You will mostly be asked to send a written request offline or online with your policy details and reason for cancellation
• After receiving the cancellation request, the insurer will generally try to provide you with a solution if you have any problems with the policy. But if you still want to cancel the policy, the cancellation process will be initiated
• Based on the period for which you were insured, the insurer will deduct the premium and send you the refund
• You will also receive an official cancellation email/letter from the insurer

While it is not wise to cancel health insurance, if you do have a valid reason to do so, keep the above-mentioned details in mind.

The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.