How to cancel a health insurance policy and get a refund?

Is it possible to cancel a health insurance policy at any time?

Yes, a health insurance policy can be cancelled at any time. However, you may receive a refund only if the cancellation is initiated within six months of the policy purchase and you have a claim-free policy history.

When should a person cancel their health insurance?

When it comes to health insurance policies, it's always recommended to avoid cancelling them and instead explore other options. However, if you must cancel, it's best to do so during the free-look period as per the policy's terms and conditions. During this period, you may receive up to 100% of the policy coverage.

What is the cost of cancelling a health insurance policy?

A health insurance policy usually does not require any cost to be cancelled. Nonetheless, enquire with your insurer to find out if there are any costs associated with policy cancellation.

Is there a penalty for cancelling a health insurance policy?

No, there is no penalty for cancelling a health insurance policy. However, refund may or may not be provided depending on the terms and conditions of the policy.

If I cancel my health insurance policy, will the premium be refunded?

If you cancel your health insurance policy within six months of its initiation, a refund will be awarded. The percentage of refund differs from insurer to insurer. So, refer to the policy wordings of your health insurance policy to find out the exact refund percentages.

What happens once a health insurance policy cancellation is requested?

Once a cancellation request is raised, usually the insurer reaches out to try to resolve the issue. If no resolution is reached or the resolution proposed is unsatisfactory to you, the cancellation process will be initiated by the insurer. Then, after deducting from the premium as per the terms of the policy, the refund will be paid to you. However, the refund will be provided only if you end it within six months of its initiation and have a claim-free policy term.

How long is the free-look period?

The free-look period for health insurance is usually around 30 days. However, this duration may vary from insurer to insurer. So, kindly refer to the policy wordings of the respective health policy to learn the exact time period.

Will my waiting period for a health condition be affected if I cancel my health insurance?

No, the waiting period for a health condition will not be affected by the cancellation of your health insurance policy. So, when you buy a new health policy, you can start from where you left off.

For example, if you have a health condition that has a 3-year waiting period and you have already served two years; then, if you terminate a health policy and buy a new one, you only have to serve one year. After that you can receive coverage for the said condition.

Instead of cancelling a health insurance policy, can I just buy another one?

Yes, you can buy another health policy in addition to your existing one. If you want to do so, note that it is more profitable to have two distinct health policies, than two policies with similar coverages. So, choose a health plan that offers different coverages to your current one.

How do I cancel my health insurance policy online?

You can cancel your health insurance policy online by visiting your insurer’s website and filling the cancellation request form. Alternatively, some insurers may demand sending an email to the customer service department to request policy cancellation.