As the world recovers from the COVID-19 pandemic, the emphasis on having better financial support for COVID-19-related treatment is higher than ever. The sudden increase in the cost of healthcare, mainly driven by the pandemic, made many people aware that exhausting their savings can only cause more problems for their loved ones. Hence, people have started investing in health insurance. However, after the pandemic, people have become more aware of a term known as the ‘cooling-off period’ when they consider buying medical insurance. What is this cooling-off period? What does this mean for you as a policy buyer? Continue reading to know more.
What is a cooling-off period?
In insurance terms, the cooling-off period refers to the time period wherein you make a full recovery from your illness before you are eligible to buy medical insurance. Depending on the illness, your recovery time may vary. Also, one cannot predictif or when they may suffer from any sudden complications during or after the recovery. So, the insurers wait until you have fully recovered before you can buy the insurancepolicy. * The cooling period lasts anywhere from 15 days to 90 days. * However, make sure you ask your insurer and read the policy document carefully to get clarity. *
Why is the cooling-off period required?
The importance of having medical insurance was highlighted especially during the COVID-19 pandemic. As the number of cases kept rising and hospitalisation become necessary for many, there was a sudden increase in the cost of hospitalisation and medical treatment. Patients who suffered from COVID-19 either recovered quickly or were left suffering lifelong complications.
It is due to these complications that the cooling-off period became more significant. If you were diagnosed with COVID-19 and did not face any complications, your request for insurance may get approved sooner. * However, if there are complications, your insurer might consider them as pre-existing illnesses. As this could cost the insurer more in terms of the compensation amount, they might not accept your request. * Once you have successfully completed the cooling-off period, the insurer usually approves your request. *
How does the cooling-off period work?
If you have recently suffered from an illness, e.g., COVID-19, and have made full recovery, the insurer can askyou to go through some tests. Once the insurer is satisfied with test results, you become eligible to purchase the medical insurance plan. Use the health insurance premium calculator to see the price of the policy before you apply for it.
Is the cooling-off period mandatory?
Yes, the cooling-off period is mandatory when you are looking to purchase the policy. * One way you can avoid this period is by purchasing the policy early on when you are fit and healthy. It also ensures better protection for you and your loved ones from major illnesses. Do keep in mind that the cooling-off period is different fromthe waiting period. The waiting period is used to describe the duration during which you cannot file a claim after the purchase of the policy.
Conclusion
To know more aboutwhatthe cooling-off period is inhealth insurance, you can get in touch with your insurance advisor.
Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.
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