A health insurance policy is necessary for all, more so due to the recent changing times. Multiple policy plans such as individual plans, family plans, employee insurance, are available in the market, from a large number of reputed insurance companies. etc.
An individual looking to buy a health insurance policy must make an informed choice based on a thorough comparison that also factors in their needs and health conditions. But, in some cases, your chosen health insurance plan may not meet your expectations or requirements for multiple reasons.
What do you do in such cases? Chances are that you would decide to end your policy mid-term with your current insurance provider and make plans to switch to an alternate plan or insurer. Are you wondering about the process for the same without losing out on your hard-earned money that’s gone into the paid premium? Here’s how you can cancel your ongoing health insurance plan and get a refund.
The steps to cancel your health insurance plan are simple - just call up your insurer and relay to them your wish to cancel your policy. Within a few days, you will receive the due refund amount in your bank. But remember that the refund amount will only come if you haven’t raised any claim during your limited policy term. If you have not raised any claim your due refund amount will depend on the time you initiated your policy i.e., whether you requested cancellation before or after your free-look period.
Most insurance companies offer a free-look period of 30 days from the date of initial policy purchase for policies purchased online and 15 days for the ones purchased offline. If you cancel your policy within this time frame you are liable to get most of the premium amount refunded barring the stamp duty, medical checkup and insurance risk charges (calculated on a pro-rata basis). But, If you cancel your health insurance policy after the free-look period is over, then you will not be liable to receive a 100% premium payment refund. Following is the breakdown for the amount of premium you’ll get back post policy cancellation depending on the amount of time that has passed -
Cancellation Time Premium Refund Percentage Within 25% of policy term 60% Within 25-50% of policy term 40% Within 50-75% of policy term 20% More than 75% of policy term 0%
Do remember that this is applicable only if you have a claim-free history during your health insurance policy term.
An individual/family head buys health insurance to receive additional protection in the form of financial and mental support and to try and secure their family’s future from unforeseen incidents. But buying a health plan does not mean that you are going to be stuck with it for the full policy term. You always have the freedom to choose the plan that makes the most sense to you and your needs and let go of the plans that are not living up to your expectations. Understanding the sentiments of every individual, Chola MS's health insurance policy provides extensive healthcare benefits that can play a vital role in safeguarding your finances.