Your life is a precious gift for both you and your loved ones. You do earn a salary, but life is unpredictable, and you must secure your loved one’s life to the best that you can. It is with this thought that insurers offer you term plan so that you can gift your family a stable financial future even after you’re gone.
However, many people shun away from buying one because they feel it is a complicated process due to medical tests involved. But if you know the relevance of medical tests, then probably you wouldn’t mind the tests. So, let’s help you understand why medical tests are crucial.
Need for Medical Tests
The insurer covers you against future risk and enables you to safeguard your family financially, even in your absence. Towards this, the insurer charges you premium, every month or year. This premium has a direct relation with your risk potential.
It is because of this reason that relevant information like occupation details, hobbies, and family health history needs to be shared with the insurer, to give them a thorough understanding of such risks. This helps the insurer ascertain your chances of making a claim.
Since health status directly influences risk potential, that is why the insurer also gets your medical assessment done. The tests establish your risk potential and help the insurer to decide your premium charge and offer you a customized insurance plan.
Effect of Medical Test Results on Your Premium Amount
Since, the tests show if you have any pre-existing illness, or reveal any signs of developing a disease, it helps determine how likely are you to make a claim. Since the chances of claim increase the insurer’s risk, they may charge you a slightly higher premium in that case. However, if your tests show normal results, then, in that case, you will only have to pay the standard premium set by the insurer.
In case your pre-existing illness is extreme, then due to higher chances of claim occurrence, the insurer may be reluctant in offering you a policy or may provide you one at a higher premium amount. However, don’t hesitate to buy a term plan because you’re being charged a slightly higher premium. It is because not having a term plan may put your loved ones and you in deep financial crisis.
What Medical Tests are Required for Term Insurance?
The medical tests usually include a physical, blood test, urine test, and electrocardiogram (ECG). All these are also supplemented by a series of questions concerning your medical history. Medical exams are mostly standard for most term and permanent life insurance policies and are provided for free by the insurer.
Drawbacks of Not Opting for Medical Tests
- Higher Chances of Claim Rejection
If you do not opt for medical tests, you will still not be able to sweep your health problems under the carpet. It is because you are required to make a statement about your health condition while filling the application form. However, if you hide your health condition, then you may have to face severe consequences at the time of making a claim.
For instance, if you do not tell your insurer that you have diabetes and you later face any major health issue related to it, then the insurer may even reject your claim based on this non-disclosure. Therefore, to avoid facing rejection at a crucial moment, undergo medical tests, and disclose all relevant information.
- Lesser Risk Coverage
Often companies lure you into buying their cover without having to undergo medical tests. However, such companies offer very less risk coverage as compared to insurers who thoroughly examine your health status and then offer you the right coverage at a specific premium charge.
So, even if you suffer from any pre-existing illness or are prone to a disease due to regular smoking or drinking, then instead of opting out of medical tests or hiding such details, share it with your insurer. This will save you from the drawback of facing insufficient or lesser coverage, when in need.
- Pay Higher Premium
Since your premium is based on your risk potential, therefore, taking a medical test can ensure that you’re aware of the grounds on which you are being charged a certain amount. In the absence of medical tests, you may even be charged a higher premium.
For example, two individuals applying for a policy undergo medical check-up, and one shows a normal sugar level, and the other comes up with a borderline case. Then the one with the normal sugar level should be required to pay a lower premium in comparison to the other. However, in the absence of medical tests, both may end up paying the same premium amount. This would mean a high premium for the healthy applicant.
Buy Online Term Insurance Plan for Your Loved Ones
As a working professional, you now know what medical tests are required for term insurance and how medical examination can be of benefit for you in the long run (even if you have to pay a slightly higher premium). Therefore, buy online term insurance plan at the earliest by opting for such tests. Reputable insurers like Max Life Insurance offer term cover that even has options to add additional benefits like accidental death and dismemberment and critical illness cover for comprehensive protection.