A Term Insurance policy is a pure protection plan which provides cover against the risk of life. It is considered the most economical form of life insurance policy because the premium price of term insurance policies is very low and the coverage is very high. The premium price in term insurance policies is decided upon various risk factors and one such important factor is your health condition, which is analyzed by the insurance company through a medical test.
Insurance companies ask for medical tests to know your current health condition, on the basis of which your premium amount is decided. A good health condition can lower your premium amount because the risk involved in such cases is very low while a deteriorating health condition can increase your premium as the probability of claim in the case of a person with a severe medical condition is more.
Many people look for various ways of skipping the medical test before purchasing a term plan, but such practice can become a hassle for you in near future. That’s why we have outlined the importance of medical tests in term insurance so that you don’t have to face any problems after buying the policy
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Why Medical Test in Term Insurance is Important?
Following are the reasons why a medical test in terms of insurance is important
Claim Rejection
Even if you are able to avoid a medical test before purchasing a policy, it doesn’t mean that you can hide your medical condition from the insurer. Before purchasing the policy, you need to disclose your health condition in the form which is considered to be properly evaluated and filled by the buyer. Now, at the time of claim, if the insurer finds that any of your given health conditions in the form is wrong, then they can reject your claim on the basis of misleading information within 3 years from policy buying. Wrong information about health conditions is done intentionally or by mistake, but it doesn’t matter to the insurer as wrong information is a strong basis for claim rejection for any insurance company.
More Premium
By going through a medical test, you can get a low premium amount if you have a good health condition. Let us understand this through an example. Mr. A and Mr. B both go for a term insurance policy that doesn’t require any medical tests. Now even if Mr. A is fit and healthy, and Mr.B is suffering from some particular disease, still both of them would end up paying the same premium. You also need to know that the premium rate of term plans with no medical test is usually higher than normal. This is because the insurer is giving you cover for unknown risks. So in the above-mentioned case, Mr. A will not get any benefit for good health condition and will pay the same premium as Mr.B who is suffering from some disease.
Low Coverage
Most of the term insurance policies which offer “no-medical tests” are low-value plans. Such type of term insurance plan offers you a very low amount of coverage which may not be sufficient for your healthcare need. So if you are buying a no medical test term insurance policy, then you will get a low cover amount for your term insurance policy, regardless of your age and health.
Type and Cost of Medical Test
Many people have this misconception that the medical tests which they need to undergo before purchasing term insurance are very painful and time taking but that’s not true as the tests required in medical checkups are very normal like ECG, Fasting Blood Sugar, Routine Urine Analysis, HIV Test, Lipid Profile Test, Comprehensive Trail Making Test, etc.
Talking about the cost of medical check-ups, some of the term insurance companies cover the complete cost of medical check-ups while others cover a major portion of the expense.
Every shortcut in life doesn’t lead to your destination; sometimes it can push you towards a wrong turn also. That’s why going for a term insurance policy with no medical test is not a good idea as it can lead to claims rejection and many other hassles in the future. If you avoid medical tests, then you will also miss various benefits of term insurance like premium according to age, the high sum assured, etc. So go through a medical test before purchasing a term insurance policy and take advantage of your plan.