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    Published On : Tue, Dec 15th, 2020
    Featured | By Nagpur Today Nagpur News

    Importance of Medical Tests for Term Insurance

    Several term insurers advertise their plans with the tagline ‘No medical tests required’ to encourage people to buy their products. However, is it beneficial to purchase a term plan without the initial medical screening?

    The primary objective of medical tests is to determine your health condition. The insurer will use the results to customize the term plan to meet your requirements and maximize the benefits.

    Before you fall for the ‘no tests required’ term insurance plan, do not forget about the possible risks that may arise in the future. Some of these include:

    1. Rejection of your family’s claim

    Insurers may deny your family’s claim if you do not disclose relevant information about your health, lifestyle, and pre-existing conditions at the time of buying the policy. You may have not provided the information to save on the term insurance premium. Based on this, the insurer may disapprove of the claim in your absence, which means your family will not receive the death benefit. However, when you undergo the medical tests from an impaneled physician, the reports are available with the insurance company, which are proofs of your health condition. This ensures that the insurer will not reject the claim in the future due to non-disclosure of relevant information.

    1. Lower cover

    Most plans that advertise ‘no medical tests required’ offer lower sum assured (SA) when compared to policies that require initial checkups. The SA for such policies may not be enough to financially protect your family in your sudden absence. Generally, the SA should be adequate to ensure your survivors are able to sustain their current lifestyle and meet their long-term financial goals without any liquidity crisis. You can take the help of an online term plan calculator to determine the SA based on your family’s requirements. When you do the medical tests and the results show that you are healthy, the insurer perceives you as a low-risk policyholder, and they may offer you a higher SA.

    1. Higher premium

    The term insurance premiumdepends on many factors, such as your age, gender, health condition, income, lifestyle, and pre-existing conditions. If you do not undergo medical tests before purchasing the policy, the insurance company assumes higher risks due to a lack of information about your health condition. Therefore, the insurer may levy more premium when compared to term plans that require medical checkups.

    Medical tests needed while purchasing a term plan

    The medical examinations required may vary from one insurer to another. Generally, the tests commence with measuring your height and weight needed to calculate the Body Mass Index (BMI). Based on the BMI, the insurance company determines the probable risks. Some additional tests, such as differential blood count, complete blood count (CBC), and glucose in urine and blood may be required.

    Insurers may also need medical screening for HIV I and II, hormonal assays, and cholesterol. You may have to undergo other tests like diabetes and hypertension assessments if there is a family history of such ailments or if you consume alcohol or are a smoker. In case you have any pre-existing conditions, the insurance company may ask you to do additional tests conducted by specialist physicians before approving your proposal.

    Term insurance in Indiais available without medical checkups but pose higher risks. The primary objective of a term plan is to ensure the financial security of your family in your sudden absence. When you opt for a policy without medical tests, the premium may be higher with a lower SA. Additionally, the terms and conditions of such policies are stringent, as the risks are higher for the insurers. Therefore, to avoid issues in the future, it is recommended you buy a term plan that requires medical checkups for better coverage.

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