What is the Importance of Medical Tests in Term Insurance?

At The End

A term insurance plan provides safety to your family in the event of your untimely demise. Purchasing a term insurance plan without any medical test may sound convenient and attractive, however, it does not derive any significant advantage to the policy buyer. Let us know in detail how a term insurance plan without any healthcare test limits the advantages and is not user friendly.

High Probability of Claim Rejection

Purchasing a term insurance plan without any healthcare tests does not mean that now you no longer have to disclose all your health-related issues. Here, you are required to disclose all your health problems voluntarily and give a statement about your medical condition in the application form. An insurance company follows a very strict guideline and an investigation procedure is carried out to sanction any type of claim. In case, your health statement is found to be inconsistent and incorrect at the time of claim settlement procedure, it may lead to rejection of your claim on the grounds of concealment of information.

Higher Premium Amount

The basis of any insurance policy is to offer coverage against any kind of life risk and lower is the quantum of the risk, the lower would be the payable premium amount, and vice versa. Therefore, when it comes to a term insurance plan, the insurance company needs to know about your health condition in order to determine the amount of insurance premium. In case, your health reports do not indicate any serious health related issue and you are physically fit, the premium payable towards your insurance plan would be much lower. In case, your health report finds out regarding any pre-existing disease then it would get factored during the premium calculation. In case, you believe that purchasing a term insurance plan with no medical tests would help you in fetching better coverage and lower premium, then you are required to reconsider things. An insurance provider factors in all kinds of risks, whether you are having any pre-existing disease or not in order to calculate the premium amount, which can turn out to be higher.

Lower Risk Coverage

A term insurance plan without any medical test is said to be a low-risk coverage policy and the benefits that can be availed are limited just to Rs 5 to Rs 25 Lakh with most of the insurance companies. These term plans do not need any medical tests, the insurance company is required to compensate for the risks related with any unknown health ailments that may have been diagnosed at the time of the medical test. Keeping into mind today's inflationary situation and evolving lifestyles, a low risk coverage term insurance plan is insufficient and would fail to serve any purpose.

At The End

Purchasing a term insurance plan with a medical test may need you to pay a high premium amount but it helps in saving your family members and loved ones from the hassles of claim settlement procedure. The more you try to remain transparent regarding your health history, the quicker and more easily your claim would get approved by the insurer.