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How to Cancel Your Health Insurance Policy?

This blog explains how to cancel a health insurance policy, detailing the process, cancellation timelines, and potential refunds.

  • 17 Jan 2025
  • 5 min read
  • 285 views

Most insurance policies can be canceled at any time should you decide not to continue with it. However, certain terms and conditions would govern the cancellation depending on when you decide to discontinue after buying the policy. This blog discusses how to cancel your health insurance policy.

Steps to Cancel the Health Insurance Policy

There may be many reasons as to why you would want to cancel your health insurance policy. You might want to switch to another plan or even another provider, or you might not be happy with how the policy’s terms and conditions apply. There might be policy changes governing your decision, like when your employer steps in to cover healthcare costs. Whatever the reason, you can cancel your policy at any time either for free or with some standard deductions as is applicable.

Before we proceed with the know-how of policy cancellation, you should be informed about the deductions or penalties for a cancellation request. The possible scenarios are as follows-

Cancellation During Free-Look Period

  • Cancellation during the free-look period is largely free, except for a deduction of the premium amount for the number of days from the policy's issuance to its cancellation. The free-look period is basically the period that allows for policy cancellation without having to pay the surrender charges. It generally ranges from 15 to 30 days, depending on the policy type and the terms of your insurance provider.

Cancellations After That

  • Within one month after the free-look period, you will be refunded 75% of your premium amount during this period of timing the cancellation.
  • Within three months after the free-look period will entitle you to a 50% refund of the premium amount pertaining to your policy.
  • Within six months after the free-look period, 25% of the premium amount will be returned.

So, if you are wondering how to cancel your health insurance policy, here are the steps to go about it:

  • Reach out to your provider’s support department either online or offline and request for the policy cancellation.
  • Submit a written request for cancellation while providing complete policy details. You will also be required to clearly state the reason behind the cancellation.
  • The cancellation process will be initiated after your provider is sufficiently convinced about the stated reason and cannot work out a feasible solution for you.
  • Your cancellation request will be processed, and the insurance company will deduct the applicable premium. The final refundable amount will then be credited to your account.
  • An official letter canceling the policy upon your request will be mailed to you.

Conclusion

Knowing how to cancel a health insurance policy will help when you have bought a plan but are not convinced about it. However, canceling a health insurance policy is not recommended, and you should always read the terms and conditions carefully before buying any plan.

Disclaimer: The information provided in this blog is for educational and informational purposes only. It is not intended as a substitute for professional advice, diagnosis, or treatment. Please consult your general physician or another certified medical professional for any questions regarding a medical condition. Relying on any information provided in this blog is solely at your own risk, and ICICI Lombard is not responsible for any effects or consequences resulting from the use of the information shared

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