What is Cooling-Off Period in Health Insurance?

Posted on: Jun 28, 2022 | | Written by:

What is Cooling-Off Period in Health Insurance?

In health insurance, cooling-off period is basically a time period after recovery during which a person cannot buy health insurance, and that’s what makes it different from a waiting period. Cooling-off period can range from a few days to a few months, and it can be treated as a delay period, where a person has to completely recover from their illness and then become fit to be insured.This kind of cool-off period is applicable to most major medical insurance plans in India.

How important is the cooling-off period in health insurance?

If someone is currently suffering from, or has just recovered from a medical condition applies for a health insurance cover, the insurance is underwritten as per the risks involved. Hence, the policy is accepted once the medical condition has improved, and there is lesser risk for the insurer.

In cases of Covid-19 patients, who have recovered, this gives time for their symptoms to fully subside and shows that chances of relapse are minimized. Also, those who are asymptomatic Covid-19 patients might know that they have the virus but might get diagnosed with coronavirus in the future.

Since the long-term effects of Covid-19 are still unknown, and there have been cases of pulmonary and cardiovascular problems, underwriting new policies for recovered patients has become a more complex process.A cooling-off period allows a period of time for any such complications to surface, as they may have animpact on the policy.

This means that the policyholders will have fewer issues in getting their claims settled in the future.

Cooling-off period andHealth Insurance

The insurer gets time to assess a customer’s health during a cooling-off period, before they buy a health insurance policy.

During this period, the customer may be asked to provide a negative report and to undergo a physical check-up. Some insurers also require you to disclose any health conditions over the past six months to one year, and provide medical records of the same. The reason behind this is to make sure a person is healthy from a risk assessment standpoint.

However, depending on the case, insurance underwriters take a call on whether to issue a policy immediately or postpone it for a cooling-off period. But cooling-off period does not impact the health insurance premiums.

Things to do during Health Insurance cooling-off period

Preferably, you should get a medical insurance before you could get infected with Covid-19 so that you can avail yourself of the policy’s benefits without any further delay. Do read the policy document carefully and check what is covered under your policy, so that you are prepared for all situations. Renew yourmedical insurance on time to avoid any penalties and gaps in your coverage.

If you have recovered from an illness, always disclose any information asked of you, like prior health conditions or medical records; so that you will avoid any discrepancies that can later get your claim being rejected.

Conclusion

Due to the global Covid-19 pandemic, a medical insurance policy has become a necessity. It can safeguard you from major financial burden in case there is a health emergency. People who have recovered from serious illnesses like Covid-19 may have a possibility of future complications, they might need to undergo a cooling-off period so that their health is evaluated fairly and accurately before buying a new health insurance policy.

However, in other scenario when you are in good health, try to get a medical insurance coverage as soon as possible.

Disclaimer: The above information is for illustrative purpose only. For more details, please refer to policy wordings and prospectus before concluding the sales.

What is Loading in Health Insurance Policy?

Here’s What You Need to Know about Survival Period in Health Insurance

What are Non-Medical Expenses in Health Insurance?