Free Look Period in Health Insurance: A Complete Guide for Policyholders

Purchasing health insurance—whether for yourself, your parents, or your family—is a significant financial and personal decision. But what if, after reviewing the fine print, you realise the policy doesn't match your needs or expectations? Fortunately, health insurance providers in India offer a free look period, a consumer-friendly provision that allows you to revisit and reconsider your decision.

In this blog, we will explore the free look period in health insurance, how it works, its benefits, and how you can use it to your advantage, especially if you’ve opted for a medical insurance policy for senior citizens or health insurance for your family.

What is the Free Look Period in Health Insurance?

The free look period in health insurance is a stipulated time frame offered to a policyholder after receiving the policy document, during which they can thoroughly evaluate the terms and conditions of the insurance policy. If, for any reason, the buyer is not satisfied with the policy's features, they can cancel it within this period and receive a refund (after minimal deductions).

This clause is mandated by the Insurance Regulatory and Development Authority of India (IRDAI) and applies to most new individual health insurance policies. It is particularly useful for those who might have purchased a policy in haste or under a misunderstanding, giving them a second chance to make the right decision.

How Does the Free Look Period Work?

Understanding how the free look period in insurance works is crucial for making informed use of it. Here’s a step-by-step breakdown:

1. Policy Receipt: The free look period begins from the date you receive the health insurance policy document—not the purchase date.
2. Duration: Generally, the free look period is 30 days for both online and offline health insurance policies.
3. Evaluation Window: During this window, the policyholder should read the fine print—terms, exclusions, waiting periods, sub-limits, and co-pay clauses.
4. Cancellation Request: If the policyholder finds the policy unsuitable, they can request a cancellation by submitting a written application, often along with ID proof and bank details.
5. Refund Processing: After deducting applicable charges (like stamp duty, medical examination fees, and proportional premium for days covered), the remaining amount is refunded.

What is the Purpose of the Free Look Period in Insurance?

The primary purpose of the free look period in insurance is to protect consumers. In an industry where technical jargon and complex conditions are commonplace, the free look period ensures:

• Transparency: It helps policyholders understand the exact benefits and limitations of their health policy.
• Informed Decisions: Provides a cushion to evaluate the terms post-purchase, without financial loss.
• Mis-selling Correction: If a policy was bought under misrepresentation, this period offers a legitimate exit route.
• Trust and Fairness: Builds credibility for insurance providers by allowing buyers to opt out without penalty.

Also Read: Difference Between Health Insurance and Critical Illness Insurance

Benefits of the Free Look Period

The free look period in health insurance offers multiple advantages to policyholders:

• Risk-Free Evaluation: Gives you peace of mind by offering a “cooling-off” period to assess your choice.
• Cost Saving: Avoid being locked into an unsuitable policy and losing money in the long term.
• Transparency Boost: Ensures insurers remain accountable for the accuracy of policy presentations.
• Flexible Decision-Making: Especially beneficial for first-time buyers or those buying health insurance for family or senior citizens.

Features of the Free Look Period

Here are the essential features of the free look period:

• Duration: Typically 30 days from receipt of policy documents.
• Applicable Policies: Only individual health insurance policies with a term of at least 3 years; not applicable to group or short-term policies.
• Refund Conditions: Policyholder receives a refund after certain deductions.
• Claim Restrictions: If a claim is made during the free look period, cancellation may not be allowed.
• Written Notice Required: Policyholder must submit a written cancellation request to initiate the process.

Key Points About the Free Look Period in Health Insurance

To make the most of your free look period, keep the following key points in mind:

• Start Counting from Document Receipt: The free look period starts when you physically or digitally receive the policy.
• No Claims Allowed: You cannot initiate any claim during this period if you plan to cancel the policy.
• Deductions Apply: Refunds are processed after deductions like stamp duty and pro-rata premium.
• No Benefit for Renewals: This is strictly a new policy benefit and does not apply during policy renewal.
• Medical Tests May Incur Charges: If you underwent a pre-policy health check-up, that amount is also deducted from the refund.

Also Read: Reasons Why Health Insurance Premiums Change With Increasing Age

Factors to Consider Before Buying a Free Look Period in Health Insurance

Duration

A majority of insurance companies provide the policyholder with a free-look period of 15 days. The period begins immediately from the date the company issues a policy to the insured. If a policyholder wishes to either make changes in the policy or cancel the entire plan, he/she must submit the receipt date of the insurance policy.

Permit

Policyholders must present the insurance provider with a written request to avail the free look period. Specific insurance providers offer buyers with online services. With an online facility, the permits for the duration can be submitted directly on the online portal of the insurance company.

Personal details

An individual must provide relevant information like the date of obtaining the policy, specific details about the insurance agent, and so on. If a policyholder opts for cancellation of the policy, he/she must mention a relevant reason for the cancellation. In case of a premium refund, a customer must provide the insured with his/her bank details. Moreover, a policyholder must attach a revenue stamp along with their signature.

Paperwork

Every individual must compulsorily provide the insured with documents required for health insurance purchase and the original policy document. However, if a policyholder doesn’t have an original document, they can submit an indemnity bond. For a refund, they should issue the receipt of the first premium payment along with a cancelled cheque.

Premium

When a policyholder decides to cancel the health insurance policy, they can acquire a refund of their health insurance premium upon cancellation. The refund is provided to an individual after the following deductions have been made:

• Medical test expenses.
• Expenses incurred on stamp duty.
• Proportionate risk premium for the tenure of the coverage.

Conditions

A policyholder must opt for a health insurance policy, which provides coverage for a minimum period of 3 years. Besides, an 18% GST applies to financial services from 1^st July 2017. The premium depends on specific factors like age of the policyholder, residence, and GST rates. To sum up, health insurance plans cover medical contingencies, which tend to disrupt the financial condition of the policyholder. However, the policy must be thoroughly examined and returned if it does not meet all your requirements. Bajaj General Insurance provides an online comparison of health insurance premium rates with the help of an online calculator. Additionally, it offers the buyers a hassle-free claim settlement procedure and cashless benefits of hospitalization.

How to Cancel a Health Insurance Policy During the Free Look Period?

If you’ve decided to cancel your policy during the free look period, here’s what you need to do:

1. Initiate Contact: Reach out to your insurer’s customer service or nearest branch as early as possible.
2. Submit a Cancellation Request: Fill in the cancellation form with your policy details, reason for cancellation, and attach supporting documents (ID proof, policy copy, premium receipt, and cancelled cheque).
3. Follow Up: Your insurer may call to verify your cancellation request and initiate processing.
4. Refund Process: After deductions, the remaining premium is refunded to your bank account, usually within 7–15 working days.

Conditions Applied on Policy Cancellation During Free Look Period

Although consumer-friendly, the free look period comes with specific conditions:

• Timeliness: The cancellation must be requested strictly within 30 days of receiving the policy.
• No Claims Made: You cannot cancel the policy if you’ve already filed a claim.
• Refund Deductions:
  • Pro-rated premium for days covered
  • Stamp duty charges
  • Medical exam expenses (if any)
• Written Request: A physical or digital written request is mandatory to cancel.
• Policy Type: Not applicable for group insurance, short-term, or top-up plans.

Final Thoughts

The free look period in health insurance is a valuable consumer protection tool, especially if you're purchasing a medical insurance policy for senior citizens or a health insurance plan for your family. It gives you the freedom to rethink your purchase decision and cancel without suffering major losses. With more awareness and proper understanding, policyholders can make smarter, more informed decisions without being tied to a policy that doesn't serve them well.

This free look period not only acts as a safeguard but also reinforces transparency and accountability within the insurance sector. Always review your policy within this period to ensure you're truly covered—because peace of mind begins with the right decision.

FAQs

Why does a health insurance policy have a free look period?

To allow policyholders time to review their plan and cancel it if it's unsuitable.

Do I get a free look period at the time of renewing my policy?

No, the free look period applies only to new policies, not renewals.

What is the maximum free look period?

Typically, it's 30 days from the date of policy document receipt.

What is a 30-day free look period?

It is a 30-day window where the policyholder can review and cancel the policy without heavy penalties.

How do you calculate the free look period?

It starts from the day the policyholder receives the policy document (physically or digitally).

What is the duration of the free look period?

Currently, most insurers offer a 30-day free look period.

What is the use of a free look period in insurance?

It protects buyers from mis-sold or unsuitable policies and offers a way to exit risk-free.

*Standard T&C apply

**Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.

***Disclaimer: The content on this page is generic and shared only for informational and explanatory purposes. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making any related decisions.