The Importance of Medical Tests While Buying Term Insurance
You may often come across the clause ‘No medical tests required’ in many insurance ads. This might sound appealing, as it seems to save your time and effort by not going through the medical tests. But this is not true!
Medical examinations are necessary while buying a term insurance to know about the condition of your health. So, the insurance company provides you with the best-customised insurance plan based on the medical test results and your requirements. If you are opting for such term insurance plan, wherein immediate medical tests are not required, then you should know that there are certain risks involved.
Read on to know more about the repercussions involved if you do not get your medical tests done before purchasing the term insurance and the reasons why the tests are recommended: –
1. Claim rejection: Even if you are not required to take the medical tests, still you will have to make a statement regarding your health condition in the application form. If you do not disclose a medical condition, it can have grave repercussions. Approximately 2-3 percent of claims are rejected due to this single reason every year. Therefore, you need to be honest with the insurance provider, from whom you are buying the term life insurance policy. For example, if you smoke and drink, even on an occasional basis or have a diagnosis, then such information will dictate your term insurance cover.
2. Amount of premium: In term insurance, risk perception determines the premium. So, it is crucial for the insurance company to be informed about your medical condition in order to calculate the amount of premium you are required to pay. Your premium will be lower if you are physically healthy. A medical fitness certificate can also create an impact in your term insurance policy. But if you have any pre-existing medical condition, then you will have to pay a higher premium amount.
3. The scope of risk cover: If you buy a term life insurance policy, wherein you are not required to give a medical test, then you should certainly give it a second thought. As in such case, the insurance provider will also consider the scope of risk with the unknown medical issue, that you might not have mentioned. And this is the reason, the policy coverage will most likely have a lower value.
4. Sum assured: The ‘sum assured’ is the money that is paid to your nominees, in case of an unfortunate event during the tenure of the term plan. The insurance providers get to know everything related to your health condition, from the medical tests that you take for term insurance. If you are relatively healthy, then you are eligible to get an increased amount of sum assured. On the other hand, the term plans that do not require you to take medical tests, provides a lower amount of sum assured which might not be enough to cover your family’s finances.
Which medical tests to undergo?
You must be thinking about which medical tests you need to take for buying term insurance. The answer to this question is subjective, as it depends on the applicant. Every insurance applicant should take some basic tests like urine test, HIV I and II, Cholesterol, Fasting Plasma Glucose, Differential Count, and Complete Blood Count. The tests are based on various factors like the family medical history, age, and the kind of term insurance policy you have chosen.
What you should ideally do?
It is best to opt for a term insurance plan that requires you to take a medical test at an early age; so that, the amount of premium is as low as possible. Not a lot of people have serious health conditions at such age. Hence, if you buy a term life insurance early like in the twenties when you start working in life, you also get a free medical check-up along with the lowest premium possible. Hence, make sure you do not get tempted by a term life insurance plan that does not make it compulsory to get medical tests done.
Moreover, getting intimidated by the paperwork involved is inevitable but it is important that you understand why it is crucial. The medical tests are a routine check-up, so you really do not have to worry about a thing. The insurer just needs to get a clear picture of your health to fathom the likelihood of your falling sick or developing a critical illness or various other eventualities.
All in all, it is apparent that if you purchase a term insurance that does not mandate to take medical tests; then it might not provide the coverage that you require at the time of need. Going for medical tests might seem gruelling at first, but it will benefit you in the long haul.