What Medical Test are Required for Term Insurance

/Term life insurance is a type of life insurance that provides financial protection to the life assured's family in case of their untimely demise when the plan is active. Unlike other types of life insurance, term insurance offers pure risk protection and does not have any investment component, thereby offering affordable premiums. The main objective behind investing in a term insurance plan is to keep your financial dependents financially secure in case your unfortunate demise happens before you accrue sufficient wealth for their comfortable living. The claim amount can then help your family to retain their lifestyle and fulfil all their future dreams.

However, insurers require medical tests before issuing a term life insurance policy. This is because medical tests help insurers determine the risk associated with insuring an individual. Let’s discuss medical test for term insurance in detail. 👇

Term Life Insurance Medical Test

As mentioned above, before your term insurance application is approved by the insurer, they conduct medical tests to assess your overall health and determine your risk level. While the idea of medical tests or medical underwriting may seem daunting, it's a necessary step in the process of obtaining term insurance. Medical underwriting involves two rounds: a telemedical questionnaire and a physical checkup/diagnostics and radiological tests. The costs of these pre-policy medical tests are usually taken care of by the insurer. Whether you’ll go through one of these steps or both will hugely depend upon your proposal form declaration, age, and the sum assured you choose. For this, insurers usually have an established system of ‘medical grids’. Each medical grid contains a series of medical tests that can either be radiological or diagnostic. So once you submit your term insurance proposal form, the insurer’s underwriting team will conduct a telemedical round. After this, you will be assigned a medical grid. The tests you are prescribed to undertake will happen at a diagnostic centre that has a tie-up with the insurer, at a prescheduled date and time.

Medical Test Required For Term Insurance

Generally, a term insurance medical test list contains -

• A complete blood count to check your blood pressure, glucose levels, cholesterol levels, etc.
• A urine test to check for signs of nicotine, tobacco, or drug usage. You may also be asked to undertake other medical tests like liver function test, treadmill test, etc.

Why Are Medical Tests Conducted For Buying Term Insurance?

The primary purpose of imposing medical tests during term insurance purchases is to determine how risky your profile is to cover. These tests help the insurer gauge any long-term risks by giving them a greater insight into your lifestyle and health habits. If your medical reports show that you are a healthy individual with no major health concerns or pre-existing conditions, you will likely be categorised as a standard life. This means that the insurer will approve your term insurance proposal at standard prices without any change in the associated Terms &Conditions. However, if your medical tests show sub-optimal results, you may be determined a sub-standard life, and this can result in higher premiums being charged by the insurer. In addition to charging higher premiums, insurers may also add other restrictions to your policy or even reject your term insurance proposal altogether! It's important to understand that these measures are taken by insurers to mitigate their risks. Along with this, medical tests also ensure that you declare all your health conditions correctly and with complete honesty. This will make sure your loved ones don’t face disputes or rejections if a claim arises in the future. So, it’s very important to not hide or falsify your health status. Remember that you won’t be around during the time of claim settlement and any misses in your health declaration can lead to a rejection. In a very recent incident1, a woman lost out on her life insurance claim because her husband didn’t disclose that he had diabetes. Therefore, if you have missed out on declaring any health condition or disease, make sure you notify the insurer immediately. They will evaluate your term insurance proposal all over again and may charge higher premiums or cancel the policy.

Wrapping Up

Going through a medical checkup for term insurance is a significant aspect of ensuring that your loved ones are financially protected in case of an unforeseen event. Along with this, as the policyholder, it is your responsibility to inform the insurer of any health conditions or diseases that may affect your coverage. By doing so, you can have peace of mind knowing that your policy will provide the necessary support when it is needed the most.

Sources

[1]https://timesofindia.indiatimes.com/city/bengaluru/man-hides-diabetes-wife-loses-rs-50-lakh-insurance/articleshow/101681511.cms