Is it necessary to use the free look period before finalising a policy?

The free look period is an essential feature in health insurance policies. It is a trial period that gives policyholders time to review their plan’s terms and conditions after purchase. Although it is not necessary to use it, it is advisable to take advantage of this period to ensure that the policy meets your expectations.

Most types of health insurance policies come with a free-look period of 15 or 30 days. During this time, the policyholder can read the policy document properly, check the fine print, exclusions, limitations and cancel the policy without any penalty if they are not satisfied with their recently bought health insurance policy.

When Can the Free Look Period Be Beneficial?

This feature can be particularly beneficial if you have invested in a health insurance policy online or through an agent without fully understanding all the details. While purchasing a policy, many people neglect major factors such as sub-limits, co-payment clauses, or exclusions. So, you can review your policy during this time frame, which allows you to understand the policy features properly, which can help avoid surprises at the time of a claim.

This can also be helpful if you have purchased a policy and later find a better option somewhere else. In such cases, you can use the free look period to cancel your existing policy.

If you are not satisfied with the policy, you have the option to cancel it within the free look period. In such cases, the insurer will refund the premium after charging a minimal amount, which includes stamp duty, expenses incurred by the insurer towards a medical test, or proportionate risk premium for the period the policy was active.

In addition, to cancel your health insurance policy, you need to submit original documents. You will need to provide the receipt of the first paid premium, a cancelled cheque for the purpose of refund. In case the original document is not available, an indemnity bond is required.

Bottom Line

Using the feature-free look period is not compulsory, but it can be helpful when you are not satisfied with the policy. During this period, you can review the policy benefits, terms and conditions of your policy and decide whether to continue, modify any details or cancel the policy.