cancellation of health insurance policy

How can I Cancel my Health Insurance Policy and receive a Refund?

In today’s scenario, having a health insurance policy isn’t optional; it’s essential. Besides procuring coverage, consider purchasing family health insurance plans to guarantee adequate health protection for your loved ones during any medical crisis. Understanding the policy’s terms of service is just as crucial as acquiring the insurance.

Suppose you decide to cancel your health insurance plan; it’s crucial to familiarize yourself with specific regulations. Although you can cancel your health insurance plan at any time without a waiting period, the refund amount you receive hinges on the timing of the cancellation. Continue reading to understand the health insurance plan’s cancellation policy in detail.

Free-Look Cancellation

The insurance company grants a free-look period of 30 days for online health insurance policies and 15 days for offline policies, starting from the policy initiation date. During this period, policyholders can cancel the policy if they are dissatisfied with its terms and conditions. Within the free-look period, individuals are entitled to receive a refund of up to 100% of the premium amount. However, the insurer will deduct the premium for the days of coverage and any expenses incurred for stamp duty and medical tests, if applicable.

Cancellation After Free-Look Period

You can cancel the health insurance policy after the free-look period has elapsed. However, canceling the policy beyond the free-look period means you won’t receive a 100% refund of the premium amount.

  • If the policy is canceled within one month after the free-look period ends, the policyholder will receive a refund of 75% of the premium amount.
  • If the policyholder cancels the policy within three months after the free-look period ends, they will receive a refund of 50% of the premium amount.
  • If the policyholder cancels the policy within six months after the completion of the free-look period, they will receive a refund of 25% of the premium amount.
  • If the policy is canceled after the completion of six months, the insurer will not issue any refund.

Cancellation Request

Once you determine that the purchased plan is unsatisfactory, you can reach out to the insurance company regarding policy cancellation. Some health insurance providers provide a standard health insurance cancellation form, which you must properly fill out during the free-look period. When you complete the cancellation form, you must provide specific information, including the reason for policy cancellation, policy details, date of receiving the policy document, etc.

Cancellation Process

Upon receiving your cancellation request, the insurance company will contact you to discuss the reason for policy cancellation and offer potential solutions. If you still wish to cancel the health insurance policy online, the insurer must process the request and initiate the refund.

Steps to Cancel the Health Insurance Policy

Now that you are familiar with the rules of health insurance policy cancellation, let’s examine the step-by-step process for canceling the policy.

  • Contact the support department of the insurance company to submit your request for policy cancellation.
  • You need to send a written request either offline or online, providing the details of your policy and the reason for canceling the policy.
  • Upon receiving the request for policy cancellation, the insurance company will attempt to provide you with a solution regarding the matter.
  • If you still desire to cancel the policy, the insurance company will initiate the policy cancellation process.
  • The insurance company will deduct the premium amount and issue refunds based on the duration of your insurance coverage.
  • The insurer will send you an official cancellation letter or email.

 

What is Refunded?

Each insurance provider has its own refund policies. However, typically, the insurer returns the premium amount you paid after deducting the following:

  • Administrative charges
  • The cost of a medical examination incurred by the insurer.
  • The portion of the premium corresponds to the time during which the insured was covered.

The Bottom Point

If you’re discontent with the policy benefits and have a valid reason for cancellation, you can proceed. Take into account the aforementioned points when canceling the policy. However, it’s advisable not to cancel your health insurance policy unless a valid solution exists.