Do we get term insurance without medical test in India – 2024?

People invest in a term insurance plan to financially cover their families against the odds of the breadwinner passing away. When the person who financially provides for the family is not around anymore, the dependent family members may go through many unfortunate circumstances. A cover that will guarantee* their financial security without compromising on their lifestyle becomes the need of the day.

When you apply for a term insurance policy, your insurer might require you to undergo a medical test. These tests evaluate your risk quotient as an applicant that the insurance company may have to cover. The medical screening lets your insurer better understand your health status and determine the premiums.

As part of term insurance underwriting, it’s usual for the insurers to ask you to undergo certain medical tests (called pre-policy medical checks). These are decided on the basis of your health declaration in the proposal form, age, the total sum assured you choose, etc.

But do insurers issue term insurance without a medical test in India? Let’s see.

What is Term Insurance?

Term insurance is a contract between you and the insurance company to provide a sum assured to your nominee in case you pass away during the policy period. In exchange for this financial security, you will be required to make regular premium payments.

How Does Term Insurance Work?

A term insurance policy secures the financial future of your family. If you pass away during the policy term, your nominee will receive a fixed sum of money as the death benefit. They can use this money to fund their financial goals, pay off any loans/liabilities, and take care of everyday expenses. It helps them to lead a life that is stable and free from the burden of financial obligations, when you are not around anymore.

However, if you outlive the policy term, the insurance company will not pay any benefits. This is why the plan is called a pure risk cover and is available at lower premiums.

Let us understand this better with an example:

Kavya is a 28-year-old working woman who lives with her only son. She has taken a personal loan of Rs. 10 lakhs and is also planning to send her son abroad for higher education by securing an educational loan. Hence, she buys term insurance policy for 20 years with a sum assured of Rs. 25 lakhs. 9

Scenario 1: A few years after buying the policy, Kavya passes away in a road accident. Her son will receive the sum assured of Rs. 25 lakhs as the death benefit.

He can use this claim amount to fund his higher studies and to pay off the outstanding loans.

Scenario 2: Kavya survives the policy term of 20 years. In this case, she or her son does not receive any benefits or sum assured or any payment from the insurer.

Term Insurance And Medical Tests

When you buy a life insurance plan, a process called underwriting is carried out. This determines how much of a risk you pose to the insurance company. There are two types of underwriting - financial and medical. For term insurance, medical underwriting is done in two steps -
👉Telemedical questionnaire
👉Physical check-up/ diagnostic and radiological tests.

Whether you will undergo only telemedical or both depends on several factors. Generally, insurers follow a system of medical grids. Each grid has a list of medical tests that could be diagnostic or radiological in nature. The grid that you are asked to undertake depends on your health declaration, age sum assured, etc.

After submission of your proposal form, the underwriter conducts a telemedical round post which you are assigned a medical grid and may be asked to go to an empanelled diagnostic centre at a scheduled date/time.

So, it can be surmised that whether you are required to undergo medical tests entirely depends on the insurer’s underwriting policies and the plan you choose.

Things to Keep in Mind When You Buy Term Insurance without a Medical Test

While buying term insurance without a medical test, you should be 100% transparent in declaring all information that the insurer needs to know. When you apply for the policy, the insurance company will ask you to fill out a questionnaire consisting of basic questions about your personal and communication details. Along with this, you will also need to answer questions regarding your and your family’s medical history and lifestyle choices.

Your insurer might charge higher premiums if you have unhealthy lifestyle habits like alcohol consumption and smoking. When you disclose this information, your premiums might increase. However, this doesn’t mean you should hide or make incorrect declarations to the insurance company.

If you provide incomplete, inaccurate information or hide details, this can cause a lot of problems for your family if a claim arises under the plan and you won’t be around to help them out. So, ensure that you make complete and honest declarations.

To Conclude

When you buy health insurance you may or may not be mandated to undergo a medical test by your insurer. You should make sure that you declare your health status and every other detail in its truest form. A term insurance policy bought without a medical test should not have any concealed or misleading information. This will ensure that your family will be able to face a smooth claim process when you are not around to help them out anymore.