Why Medical Test is Important When You Buy Term Insurance

All you need to know about the medicals and buying a term insurance policy!

With the global health crisis becoming , having a insurance policy is no longer an option. Life insurance plans act as a shield against unforeseen events that might lead to a financial crisis.

Among the many types of life insurance policies available in the market today, term insurance is the most popular choice amidst the policy buyers. It is a pure insurance product that gives you life cover for a specified term in exchange for a premium. This life cover is for a sum assured, which is paid out to your nominees in case you meet an untimely demise during the policy term.  This way, a term insurance plan offers your loved ones much-needed financial security in your absence.

Given the need and benefits of having financial cover, getting yourself insured under a term policy is imperative. You can get term insurance online as well as offline. In both cases, you will need to undergo certain steps to get yourself insured, including a medical checkup. These checkups are crucial when it comes to determining the particulars of your policy, so let us start by understanding why they are needed.

Why is medical checkup required for buying Term Insurance

Term insurance buyers are required to undergo a medical exam. Medical tests are necessary for both the insurer and the insured during the policy purchase because they determine the substance and value of the policy plan. In addition to this, here are some other reasons to get a medical test for term insurance:

• Determining Premiums - The amount of premium you pay for a term plan depends on a variety of factors, including potential health risks. Your health condition enables insurers to decide the amount of premium to be paid. If you are physically fit and healthy, you might have to pay low premiums. On the other hand, you might have to pay a high premium if you have an existing medical condition.
• Deciding the Coverage Required - The amount that is paid to the nominee in the event of the demise of the insured is also dependent on a variety of factors, including your health. If you are physically healthy, the insurance company will not hesitate to provide you with a high cover or sum assured. Any life-term plan that requires no medical tests usually has a low sum assured, which might not suit your requirements.
• Mitigating the risk of claim rejection - If you think that not undergoing a medical test will get you a good deal, then you might have to think twice. There are high chances of your claim being rejected by the insurer in case of death due to a pre-existing health condition. Hence, it is best to get a medical checkup to secure your loved ones’ future and avoid hassles later.

Importance of a Medical Test for Term Insurance

A medical examination or test enables insurers to evaluate your fitness level and overall health. They can then issue the policy in accordance with a result. The insurance company reserves the right to deny a policy claim if a pre-existing medical condition is identified under any unfavorable and regrettable conditions.

Types of medical tests for term insurance and when they are done

Depending on your unique case, you will be required to undergo certain health checkups when buying a term policy. Typically, you are required to undergo a full-body medical test for term insurance. This routine health assessment basically comprises of:

• Height and weight: This helps the insurer to understand your physical structure. If you are obese or overweight, premium rates are typically higher.
• Body mass index: In this simple test, your Body Mass Index (BMI) is calculated. Other than being a measurement of any condition, it most often acts as a standard for other testing.
• Urine test: Your urine may be subjected to several tests. Urinalysis is the term for this. Clinical examinations are performed to assess the applicant's overall health.
• Checking your CBC or hemoglobin levels: This is a blood test that counts the total amount of blood cells in your body. This test can indicate if you have any pharmaceutical side effects. A full blood count test is an excellent way to detect any hidden illnesses.
• Blood pressure levels: An applicant for a term insurance policy could have a blood test done to assess the blood pressure levels. The insurance company might request more extensive testing if you exhibit any bad symptoms.
• Blood sugar levels: The blood sugar test determines how much sugar or glucose is in your blood. This test is best used to diagnose diabetes. Fasting blood sugar is the most commonly considered choice for insurance medical tests. This particular factor's test result determines your health in a variety of medical disciplines.
• Lipid profile: Lipid profile tests are performed to detect the presence of cholesterol or other disorders in your blood. Knowing your abnormal cholesterol/fat content could be an essential factor in predicting your future medical disorders.
• Echocardiography: Your heart can be imaged using echocardiography. The functioning of your heart and risk forecasts can be tracked. This test comes in three varieties: ECG, stress echocardiography, and 3D echocardiography. Although the method is not as straightforward as urine or blood sample, the dangers involved are modest.

Based on your age, you might be required to take additional medical examinations, including cholesterol tests, hormonal checkups, HIV tests, treadmill tests, etc. The same applies in the case of a history of any illness or disease.

Typically, the insurer will guide you with the types of checkups you need to undergo, depending on the details given on your application form, including your age, health history, and the required cover. Medical tests might be mandatory in cases where your age is above 35 and/or you have a medical history of certain serious illnesses.

Let’s look at the process and importance of medical tests in insurance.

How to Buy Term Insurance?

Whether you opt to buy an online term plan in India or offline, there are certain steps that need to be followed. Of course, these should be initiated once you have done a thorough research and chosen the best term insurance plan for your needs.

• Step 1: Select the coverage
  Start by picking the amount of coverage that you seek and that suits your unique needs. Typically, it is best to choose a cover that is 20 times your current annual income to start with.
• Step 2: Customize your
  Now, select the policy term and premium paying term, followed by selecting a pay-out mode. You must also pick a frequency to pay your premiums.
• Step 3: Choose the add-ons
  Pick from different riders as per your needs to customize your term plan, such as:
  • Better Half Benefit
  • Medical or non-medical underwriting status
  • Waiver of premium on critical illness
• Step 4: Complete the formalities
  You can now submit the requested documents, from identification to medical reports and more, as asked by your insurance provider. Once you have filled in all the details and requirements, your insurer will verify everything. Thereafter, they will issue the term plan policy upon the payment of the premium.

Conclusion

Getting insured should be the first step in your financial plan, especially in unpredictable times like today. So, what are you waiting for? Secure yourself and your family today with a term insurance plan and get extensive coverage with or without any medicals!

 

Swati Tumar - Travel & Finance Writer

Swati is a Writer in the day and an illlustrator at night. Among her interests, she is quite fond of art and all things creative. She often indulges herself in creating doodles, illustrations, and other forms of content. She identifies herself as an avid traveler and shameless foodie.