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Medical Test Required for Term Insurance & Why they are Important?
When purchasing term insurance, one critical factor that comes into play is the medical test. While it may seem like an added hurdle, the medical test ensures you get the appropriate coverage based on your health status.
Whether you're a first-time buyer or revisiting your insurance policy, understanding the importance of a medical test for term insurance can help you navigate the process more confidently. Keep scrolling for a comprehensive insight!
Table of Contents
Why are Medical Tests Important in Term Insurance?
Medical tests help insurance companies assess the risks involved in insuring an individual, especially those over 40. Thus, evaluating a policyholder's current health status, family medical history, and lifestyle is a crucial step. Insurers can determine the coverage amount and premium rates based on this information.
As a result, the importance of medical tests for term insurance in India where health concerns like hypertension, diabetes, and heart diseases are common, deserves special mention. Such tests help insurers offer tailored and affordable policies to a policyholder as per their health conditions.
Besides, medical tests help ensure that policyholders are not overpaying for coverage they don’t need or are not underinsured in the event of a health crisis.
Benefits of Medical Tests in Term Insurance
Risk Assessment
Medical tests help assess the death risks of an applicant due to any pre-existing medical condition. Thus, insurers can determine the risks associated with offering coverage to an individual and provide suitable insurance coverage to avoid financial losses in the future.Affordable Premiums
Your term insurance premium can decrease or increase based on your health profile. Sound health indicates that the policyholder has fewer frequent claims and hospitalisation chances. In such cases, where the insurer can expect a longer no-claim period, the premium amount remains low.
However, when an individual is detected with serious health conditions, the premium amount goes higher due to the possibility of frequent hospitalisation and future claims.
Better Coverage Options
The insurer gets detailed information on your medical conditions through health checkups and can suggest suitable coverage options. Additionally, you can customise policy coverage with add-ons or riders based on your health condition.Avoiding Claim Rejections
Not disclosing personal health information while buying a term insurance policy can affect your insurance claim and even lead to rejection. Thus, to overcome such hurdles, you must go through a detailed medical checkup while buying a term insurance policy.What are the Common Medical Tests in Term Insurance?
Here are some of the most common medical tests for term insurance in India:
Factors Affecting Requirement of Medical Tests
Sum Assured
Sum assured is the predetermined amount that a policyholder’s family will receive as insurance benefits in case of the individual’s untimely demise during the policy tenure. Medical tests for term insurance can help applicants get a higher sum assured if they are in sound health.
There are several term plans in India that do not require a medical examination. However, they usually have a lower sum assured.
Premium Amount
Your health conditions play a crucial role in determining the payable premium amount. Insurance companies calculate a policyholder's premium depending on his or her existing medical condition.
If you are physically fit, the term insurance premium will likely decrease. However, those with serious health problems can expect a higher premium to cover the risks of their physical condition.
Claim Settlement
You may have managed to buy a term insurance policy without undergoing any medical tests. However, if the insurance company finds out during the claim settlement that the policyholder has died due to a pre-existing medical condition, they may reject the insurance claim. So, opting for medical tests while buying a term insurance policy is advisable.What Do Medical Tests Cover?
Medical tests for term insurance cover a broad range of health concerns. The goal is to get a comprehensive picture of your health status. The insurance company may check your and your family’s medical records to assess what needs to be covered under the medical test.
Besides, the insurer will take measurements of your height and weight. You may also undergo additional medical tests depending on your family's medical history. The medical tests are mostly done for elderly policyholders to ensure the risks associated with their health conditions.
What is the Process of Medical Test for Term Insurance Process
After applying for term insurance, your insurance provider will ask you to appear for specific medical tests per their policy. They will schedule an appointment based on your availability and refer you to nearby diagnostic centres or even for a home check-up.
You need to provide blood and urine samples as required. Once the tests are done, you need to submit the report to your insurer to proceed with the insurance application and finalise the policy terms.
What are the Consequences of Avoiding Medical Tests?
Higher Premiums
If you avoid the medical test, the insurer may offer you a policy based on default health assumptions, which could result in higher premiums.Claim Rejection
If you hide any health conditions or fail to undergo the medical tests, the insurer may reject the claim in the event of death due to a pre-existing health-related issue.Limited Coverage
Without a medical test, insurers may provide limited coverage or exclude certain conditions from the policy.Role of Medical Tests in Claim Settlement
When you undergo the required medical tests while applying for term insurance, the insurer gets clear insights into your health conditions. Thus, when you file a claim, the insurance company will have the necessary health records to process the claim request.
Furthermore, this information will help your family receive a fair payout even if you die unexpectedly during the policy period.
What is a Video or Phone Medical Check-Up for Term Insurance?
FAQs about Medical Tests for Term Insurance
What is the purpose of a medical test in term insurance?
How do medical tests impact the term insurance premium?
What types of medical tests are usually required for term insurance?
Are there any term insurance plans that do not require medical tests?
How do lifestyle choices affect the need for medical tests in term insurance?
Can a term insurance policy be denied due to medical test results?
What happens if I avoid or skip the medical test when buying term insurance?
Will my insurer cover the cost of the medical tests?
How long does the medical test process take for term insurance approval?
How do medical test results influence term plan claim settlements?
Other Important Articles about Term Insurance Features
Other Important Articles Related to Term Insurance
Disclaimer
- This is an informative article provided on 'as is' basis for awareness purpose only and not intended as a professional advice. The content of the article is derived from various open sources across the Internet. Digit Life Insurance is not promoting or recommending any aspect in the article or its correctness. Please verify the information and your requirement before taking any decisions.
- All the figures reflected in the article are for illustrative purposes. The premium for Coverage that one buys depends on various factors including customer requirements, eligibility, age, demography, insurance provider, product, coverage amount, term and other factors
- Tax Benefits, if applicable depend on the Tax Regime opted by the individual and the applicable tax provision. Please consult your Tax consultant before making any decision.
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