Which of the following is TRUE regarding the 'free look period' and the 'waiting period' in health insurance policies?

hard Q9 of Q15

Insurance Awareness - Health Insurance

AWaiting period is the time to cancel policy; free look period is the no-claim period

BBoth free look period and waiting period refer to the time allowed for premium payment

CFree look period allows policy cancellation with refund; waiting period is no-claim period after policy start

DFree look period and waiting period are the same and interchangeable terms

Step-by-Step Solution

Step 1: Define free look period and waiting period
Free look period is the time after policy receipt during which the policyholder can cancel and get refund. Waiting period is the initial no-claim period after policy start.
Step 2: Analyze options
Free look period allows policy cancellation with refund; waiting period is no-claim period after policy start correctly distinguishes the two; others confuse or equate them incorrectly.
Final Answer:
Free look period allows policy cancellation with refund; waiting period is no-claim period after policy start → Option C
Quick Check:
This distinction is important for understanding policy terms.

Quick Trick: Free look = cancellation/refund period; Waiting period = no claims initially.

Common Mistakes:

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