Why Is A Medical Test Important While Buying Term Insurance?

The term insurance policy provides your family with monetary support to deal with a financial crisis if something unfortunate happens to you. Thus, it is vital to choose the right plan from a trustworthy insurance provider. A reliable insurance company can be found by comparing various companies’ claim settlement ratios and records. At the same time, the right plan can be constructed through careful evaluation of your needs and requirements. Moreover, a medical test is done before issuing the term insurance policy to the applicant to learn about the medical condition and if he/she is eligible to avail the policy according to the terms and conditions. The following article focuses on the significance of a medical test while purchasing a term insurance plan. So, read on to learn more.

What Happens in a Medical Examination?

Your medical examination depends on certain factors like your age (age 35 years or above), the kind of insurance policy you plan to purchase and the sum assured (Rs. 10 Lakh or above). However, if you have hereditary conditions, pre-existing illness or a family history of health issues, you must undergo the medical examination regardless of your age and sum assured.
The main examination consists of determining the Body Mass Index (BMI) through your weight and height along with some basic tests for measuring Cholesterol, Differential Count, Complete Blood Count, Fasting Plasma Glucose, Urine Test, HIV I and II. 

Why Is A Medical Test Important While Buying Term Insurance?

Here are some arguments which emphasise the importance of a medical test while purchasing a term insurance policy. 

1. High Coverage

A term insurance plan without a medical examination has a possibility of giving lower coverage as the insurer would want to compensate for the risk involved in the life assured’s unrevealed medical conditions. Hence, it would be best to buy a term insurance policy with a medical test to get better and accurate coverage according to your needs and wants.

2. Low Premium Rates

A medical test helps decide the adequate amount of payable policy premium, which is calculated through risk evaluation of the life assured’s health. A fit and healthy individual can expect to have a low premium price. On the other hand, a pre-existing medical illness is likely to raise the premium due to the high risk involved.

3. High Sum Assured

Sum assured is the amount a nominee gets if the life assured passes away before policy completion. A healthy life assured can expect to receive a higher sum assured after the medical test because of the low risk involved. Thus, it is advisable to undergo a term insurance medical examination as policies without any medical tests often provide low sum assured, which might be insufficient in accomplishing your family's future financial aspirations. 

4. No Claim Rejection

It would be best to avoid purchasing term insurance plans without a medical examination if you have a pre-existing disease related to heart, blood pressure, diabetes, or asthma. In this case, if the life assured dies before completing the policy duration, the insurance provider can reject the beneficiary's claim request made by stating that the life assured deliberately hid the accurate health conditions during the policy inception. Hence, it is wise to undergo a proper medical examination to avoid such a nightmare. 

Endnote

The above-mentioned multiple benefits of higher coverage, reasonable premium rates, adequate sum assured, and a low possibility of claim rejection indicates the significance of a term insurance policy with a medical examination. Moreover, you can even consult a financial advisor or an insurance agent to understand the particular benefits of your personalized term insurance policy with a medical test to make an excellent financial decision. 

You may also like to read:-

• Do I Need To Undergo A Medical Test Before Buying A Term Insurance Plan?
• Terms And Conditions In A Term Insurance Plan

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.