Outlook Money
Insurance plans are an integral part of financial planning. Whether for health, home, or other assets, insurance protects one from the uncertainties that life brings. However, there may be circumstances where one would want to discontinue the current plan and cancel it.
Any retail insurance policy like life, health, and motor insurance can be cancelled subject to certain terms and conditions.
In the case of health insurance, one can cancel a policy during the free look-up period, typically within 30 days from the policy's start date. During this period, if one decides to cancel, he/she will receive a full refund of the premium paid, minus some charges such as medical check-ups, and insurance risk charges.
In some policies where the risk has already commenced the premium refund for the unexpired risk period is on a pro-rata basis, provided no claim has been made during the policy year. In long-term policies where the risk date has not yet started, the premium will be refunded with a deduction applicable.
It is not advisable to cancel an insurance policy without proper consideration and verification as these are important for the financial well-being.