HOW TO CANCEL A HEALTH INSURANCE POLICY

While a health insurance policy can be cancelled anytime, without a waiting period, the refund you receive will depend on when you cancel the policy. Let's take a look at how to cancel a health insurance policy in detail.

‘’You don’t buy life insurance because you are going to die, but because those you love are going to live.’’

Cases of cancellation

Free-Look cancellation

The first fifteen days of an offline policy and the initial thirty days of an online policy is known as the free-look period. If, after receiving the policy documents, you do not agree to any of the terms or conditions to the policy, you can cancel the policy within the free-look period and receive up to a hundred per cent of the policy coverage. The insurer shall only deduct the premium for the number of days you were insured and any costs for your medical tests or stamp duty incurred by them.

Cancellation after the Free-Look period

Once the free-look period is over, still you can cancel your health insurance policy. However, the premium refund is set on the below terms;

• If the policy is cancelled within one month- seventy-five per cent of the premium gets refunded.
• If the policy is cancelled within three months- fifty per cent of the premium gets refunded.
• If the policy is cancelled within six months- twenty-five per cent of the premium gets refunded.

 

You can also cancel the health insurance policy anytime between six months to the validity of your health insurance policy. However, in such a case, you will not receive any refund on a health insurance policy that is six months old.

Steps to cancel a health insurance policy

To cancel a health insurance policy, you need to first fill out the cancellation form with all your policy details and reasons for the cancellation of the policy. The steps to cancellation of a health insurance policy include;

 

• Get in touch with the support team of the insurance provider of your health insurance policy to submit your cancellation request.
• After receiving the cancellation request from you, the insurer will try to provide you with a solution or a different policy if you have any problems with your current policy. But if you still want to cancel the health insurance policy without exchange or a new policy, then the cancellation process will be initiated at the insurer's end.
• Based on the time period for which you were insured, the insurer will deduct the premium, sending you the refund as per calculation.
• Finally, you shall receive an official cancellation email or letter from the insurer to having cancelled your health insurance policy.

 

Though every insurer has different procedures and rules, generally, the insurer refunds the premium amount paid by you after deducting administrative charges, expenses incurred by the insurer on medical expenses and premium risk covered for the time period of the insured.

While it is not wise to cancel a health insurance policy if you do have a valid reason to do so. Keep in mind the details mentioned above for the cancellation of the health insurance policy.

‘’As an athlete, I understood the value of my health insurance. I knew that in my profession, injuries were common and could happen at any time’’. – Magic Johnson

 

FAQs – Frequently asked questions

Let’s look at some frequent queries on how to cancel a health insurance policy;

Q1. Can I cancel my health insurance policy?

Yes, a health insurance policy can be cancelled anytime; however, the refund you receive will depend on when you cancel the policy-the time period.

Q2. What is the best time to cancel a health insurance policy?

While it is never wise to cancel a health insurance policy and always look for solutions and alternate policies, you can still cancel the policy within the free-look period and receive up to a hundred per cent of the policy coverage, following the set terms and conditions of the policy.

Q3. Can a health insurance policy be cancelled at any time during the validity of the health insurance policy?

Yes, you can cancel the health insurance policy anytime during the validity of your health insurance policy. However, you will not receive any refund on a health insurance policy that is more than six months old.

Q4. Is it acceptable to cancel a health insurance policy if I am not happy with its benefits?

It is not wise to cancel a health insurance policy at any given point. If you are not happy with the policy benefits you have, getting a solution or alternative policy is a better way to go about it.