The free look period is when you can freely cancel your health insurance contract and receive a refund of any premiums you’ve paid. Your free look period could begin the day your policy becomes active, the day you receive the policy paperwork, or the day your insurer mails you the policy paperwork. The start date of your free look period depends on your insurance company. If you decide not to keep the policy, simply contact the insurer to cancel it within the free look period.
The free look period is for the benefit of a policyholder. It provides additional time to review a new insurance policy in depth. Once your free look period begins, consult your insurance representative to better understand the intricacies of the contract. If you’re not happy with the terms and conditions of the contract, you can cancel the policy within the free look period and receive a full premium refund.
Note that you may be charged for medical examination expenses and, if you had bought an investment-linked plan, you may suffer investment loss if the unit price has fallen. After your policy’s free look period ends, you can still cancel your coverage by contacting your insurer. However, you won’t be refunded any premiums.
If you decide to terminate the contract during the free look period, you may have to furnish certain details such as on which date the policy document is received by you, information of the agent if you’ve bought the policy through an agent, the reason for cancelling the policy etc. Moreover, for the refund of premium, a valid bank account detail is required.
You may be required to provide a request in writing or file an online form stating your intention to cancel the contract. You might also have to return the policy documents to your insurance company by mail, or deliver them to a home or branch office or your insurance agent. Make sure to check with your insurance company for the proper procedure.
Most insurance companies around the world grant the free look period. In Singapore and Hong Kong, after you’ve bought a policy (any policy except travel, car and maid insurance), you have at least a 14-day free look or cooling-off period. During this period, you should review your policy to see if it meets your needs.
Health insurance contracts have both a free look period and a grace period, and they are not the same thing. As discussed, the free look period is a time period during which you can cancel your policy for a full premium refund.
Meanwhile, the grace period for health insurance is a stipulated window after your premium’s due date during which your policy remains active even though you have an unpaid premium. During the grace period, you can make a late payment without incurring any interest charges and still maintain coverage. Unlike the 14-day free look period, the grace period is usually one month (no less than 30 days) and applies to subsequent premiums rather than the initial purchase payment.
As mentioned, in case the policyholder has decided to cancel the policy, they can obtain a refund on the cancelled policy. However, the amount of premium to be refunded will be provided only after making the following deductions: proportionate risk premium for the coverage period, stamp duty charges, and any expenses borne by the insurance company towards medical examination.
Author
The Bowtie Life Insurance Company Limited is the first authorized virtual insurance company in Hong Kong. Through the use of modern technology and medical expertise, Bowtie offers an agent-free, commission-free and more convenient online platform for customers to quote, apply and claim for health insurance plans.
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https://www.bowtie.com.hk/en/about-us
The above information was provided by Bowtie Team. It is for reference only. In no event shall Bowtie be liable to you or to any other party for any loss or damage whatsoever or howsoever caused directly or indirectly in connection with your access to or use of the content thereon.
