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-
1. Free-Look CancellationThe 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.
2. Cancelling After Free-Look PeriodYou 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.
Steps to Cancel Health InsuranceNow 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.
Learn more about different Health Insurance Plans here.
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.
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