How To Cancel A Group Health Insurance Policy?

Almost half of the group insurance buyers struggle 😣 to find value in the features provided in the health plans they subscribe to.

A group insurance is a product designed to benefit a group of individuals belonging to similar cases or groups, such as employees in an organization. While these policies offer excellent cover at reasonable prices, there can be instances when you would want to cancel them. The reason behind such cancellation can be any, from being dissatisfied by the policy terms or finding a better alternative at the same price.

The steps to canceling your group medical plan can be easy or tedious depending on your provider, the reasons behind the cancellation, the period elapsed, and whether it covers your dependents (as ‌with most group healthcare plans).

This article discusses options to avail of when you are looking to cancel your group medical insurance plan.

Cancellation During Free Look Period

Group health plan providers provide a Free Look Period of 15 days from the policy’s date of receipt. The policyholders can use it to review the terms and conditions, and if they do not agree to one or more clauses, they can request a return of the policy. Once they place such a request, the provider is liable to refund 100% of the premium paid towards the health plan after discounting the deduction and expenses incurred towards checking the feasibility and stamp duty charges.

Will I Get A Full Refund If I Cancel The Health Insurance Policy After The Free Look Period?

Unfortunately, no. In most cases, the policy provider would deduct a percentage and refund premium on short-term rates or pro-rata basis for the unexpired policy span.

While the refund criteria vary from one insurer to another, here are the slabs followed by the providers in most cases –

• If canceled within seven days, up to 90% of the premium amount 💰 will be refunded
• If canceled within 30 days, up to 75% of the premium amount 💰 will be refunded
• If canceled within 90 days, up to 50% of the premium amount 💰 will be refunded
• If canceled within 455 days, up to 25% of the premium amount 💰 will be refunded
• If canceled within 545 days, up to 12% of the premium amount 💰 will be refunded
• If canceled after 545 days, you are not eligible for a refund

Ways To Cancel Group Health Insurance Policy After Free Look Period

Employer/Policyholder/Insured Opting For Cancellation

If the employer of people part of the group medical insurance did not find it valuable or realize that some key aspects haven’t been taken care of that well, they can initiate the cancellation process. For this, the person canceling it has to send advice and serve a notice period 📌, usually 30 days, or as the insurer requires. Care has to be taken to check the notice period before subscribing to the policy.

Once you have forwarded the cancellation request and the insurer has accepted it, you are eligible to receive the unutilized premium as a refund, subject to the terms and conditions of the policy. Such terms include the duration that has passed since the plan’s issue or if any employees covered have applied for a claim under it.

But it is imperative to return that you cannot avail of any claim during the notice period. So, make sure you have an alternative up and running before applying for the cancellation of the existing group health plan.

Cancellation From The Insurer’s Side

The insurer is the one floating the policy and has the right to cancel it whenever they deem it necessary. But similar to the insured’s side of things, they will have to provide a notice 📌 of 30 days.

In addition, unless any of those covered have placed a claim request during the policy term, the policyholders are eligible to receive the unutilized premium as a refund. If the cancellation is because the insured has acted dishonestly or failed to disclose material facts, the policy insurer is eligible not to refund anything.

Cancellation On The Death Of The Insured

If there is a death of any of the members of the group health policy, the insurer automatically ceases the policy. The refund criteria remain the same, i.e., you are eligible for a pro-rata refund of the unutilized premium provided that significant time is left for the plan’s expiry. If the insured had raised a claim against the same policy, the option of refund is unavailable.

With Plum, Group Health Insurance Cancellation Is As Easy As Getting A New Policy

Often, insurers are swift in offering you a new policy but aren’t half as quick while getting it canceled 😣. We understand the hassles that you may face if you do not get over it when the time is right. So, at Plum, we make sure canceling a group insurance policy is just as easy.

At Plum, we offer a plethora of affordable group health insurance plans that cater to all your needs with ease.