Yes, there are some insurance companies that let customers buy term insurance plans without the medical test results. However, in most of the cases, customers can get coverage up to a limited amount, as per the terms and conditions of the plan.
Medical Tests for Term Insurance Plans - Types & Importance
While purchasing a term insurance plan, you must fill in the application form with information about your personal details, your existing medical conditions, health status, etc. An insurance company will further instruct you to complete several medical examinations so that they corroborate the information you state in your application form.
Here is all you need to know about the list of medical tests for a term insurance plan.
Which Medical Tests Are Required for a Term Insurance Plan?
An insurance company instructs their customers to undergo medical examinations, considering different factors like the medical history of your family, your age, lifestyle choices, etc. Following is the list of medical tests required for a term insurance plan:
- BMI Test
- Urine Test
- Blood Test
- Kidney Function Test
- Liver Function Test
- Lipid Profile Check
- Chest X-Ray
How Are Medical Tests for Term Insurance Conducted?
Once you apply for a term insurance plan, your plan provider will carefully check your application form and documents. Once the verification is complete, the insurer will suggest test centres where you can complete medical tests required for the term insurance plan. Then, it will help you book an appointment with a test centre that will be convenient for you.
Furthermore, several insurance companies also facilitate home testing facilities. The test centre will send their representatives to get samples required for performing the list of medical tests for term insurance plans. Insurance companies bear all the expenses incurred in these procedures.
Why Do Insurers Conduct Medical Tests and Check-Ups for Term Insurance Plans?
Medical tests help insurance companies make risk perceptions about their customers. They understand your overall fitness and health conditions. Then, according to the result, they proceed with issuing a plan.
For instance, if an insurance company discovers from medical tests that a customer has pre-existing medical conditions, it can reject their application or reassess the premiums required.
Nevertheless, you will also get plans for which you do not need to undergo medical tests required for term insurance plans. However, you may get much lower coverage under those plans.
How Do Medical Test Results Influence Term Insurance Factors?
Insurance companies set different aspects of a term insurance plan based on the result of medical tests. The following are different factors that depend on the results:
- Sum Assured: If the medical reports indicate that you are healthy, you can secure a higher sum assured at a low cost. This high life cover will help you ensure better financial protection for your family members. Due to the low cost, it will be much easier for you to continue your plan.
- Premium: The business model of insurance companies works on risk perceptions. Therefore, they carefully assess the medical reports of their customers to determine premiums against their chosen term insurance sum assured amount. If they detect that your health condition is well, they will charge a lower premium. This is because they will have to undertake lower risk in providing you with the life cover.
- Approval of Claim: The insurance companies can reject the plan claim of a term insurance plan when they see that the cause of the plan holder's death is a pre-existing disease which they did not mention while purchasing the plan. So, if you do not undergo the medical tests required for the term insurance plan, you may not know whether you have pre-existing diseases. As a result, your nominee may not get the sum assured while claiming.
The list of medical tests for term insurance plans is long but which ones you will actually need to undergo depends much on your family medical records, age or indulgences. For example, if you smoke, you will have to comply with the medical test centres for lung screening mandatorily.
All these tests help an insurance company understand the risk of securing a particular customer. After this, it determines whether it will allow one to get the insurance plan or what the premium will be.
FAQs about Medical Tests for Term Insurance
Yes, while purchasing a term insurance policy, you should ideally mention your lifestyle habits along with your medical reports. For example, you need to disclose to your insurance provider whether you are a chain smoker or you abuse alcohol, etc. Otherwise, if these lifestyle habits lead to your demise, the insurance company may reject your claim for the death benefit.
It was not possible for insurance companies to perform traditional medical check-ups during the COVID-19 pandemic period due to the risk of transmitting the disease. This is why they initiated video and telephone-enabled medical check-ups. In this process, doctors will interrogate customers about their existing medical conditions. Then, based on the report, insurers will make risk assessments and proceed with the subsequent procedures.
The nominee will not get any policy benefits in case the insured individual dies due to critical illnesses. However, if they purchase the critical illness rider on top of the base term insurance plan, their nominee will be able to get policy benefits under such circumstances.
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- 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.