Importance of a Term Insurance Medical Test

Individuals purchase a term insurance policy to financially secure their family in the face of an unforeseen event. That is why it is necessary to have the best policy plan framed according to your personal needs and future requirements. A medical examination helps determine your medical condition, which customizes the terms and conditions of the plan. The following article further explains the importance of term insurance medical tests in structuring the right plan. 

What Comes Under Medical Examination?

Factors such as the life assured’s age, family history of the critical illnesses and type of insurance plan influence the medical examination. The examination includes determining the weight and height of the life assured to find the Body Mass Index (BMI) and basic tests like Urine Test, Cholesterol, Complete Blood Count, Fasting Plasma Glucose, Differential Count, HIV I and II. 

Why Is A Medical Examination Important?

As mentioned before, a medical examination helps frame a customized policy according to the needs of the life assured because every family has distinct health and financial needs and conditions. Here are some other points that focus on the significance of undergoing a medical examination while purchasing a term insurance policy.

1. Coverage

There is a chance of getting lower coverage in a term insurance plan without a medical examination as the insurance provider might compensate for the risk involved with the life assured's non-disclosure of medical conditions. Thus, it is wise to purchase a term insurance plan with a medical examination for a better deal.

2. Sum Assured

The amount a beneficiary receives when the life assured passes away before policy completion is called the sum assured. A healthy life assured is expected to be offered a higher sum assured after the medical examination due to the low risk involved. Hence, it is wise to undergo a term insurance medical test because policies without any medical tests provide low sum assured, which might not be sufficient in fulfilling your family's future financial goals and aspirations. 

3. Premium Rates

The insurer calculates the risk involved through a medical examination, which helps determine the amount of payable premium for the term insurance plan. Hence, a medical exam is essential in deciding the adequate amount of payable premium of the policy. The premium is expected to be lower if the life assured is physically fit and healthy. On the other hand, the premium is estimated to be higher if the life assured has a pre-existing medical illness, raising the risk factor.

4. Claim Rejection

Some insurance providers offer term insurance plans without a medical examination of the life assured. However, it would be best to avoid purchasing these plans if you have a pre-existing illness like heart disease, diabetes, or high blood pressure. Suppose the life assured passes away within the policy tenure. In this case, the company can reject the claim request made by the beneficiary on the grounds of deliberate non-disclosure of the life assured's health conditions during the policy inception. Thus, it is advised to undergo a proper medical examination to avoid such a dreadful situation.

Endnote

The multiple benefits such as higher sum assured, reasonable premium rates and a reduced probability of claim rejection along with an accurate picture of your health should be enough to convince you to go for a term insurance plan with a prior medical examination provision and make a sound financial decision. 

You may also like to read:-

• Do I Need To Undergo A Medical Test Before Buying A Term Insurance Plan?
• Is It Good to Buy a Term Insurance Plan in 2021?

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.