Most insurance companies, these days, are constantly promoting their term insurance plans without any medical tests. Customers are attracted to this because they believe that skipping medical exams will allow them to save time and negotiate better rates. That, however, is an untrue assumption.
A medical exam is important before purchasing a term insurance policy. The purpose of the medical exam is to determine your specific health status so that the insurance company can design the ideal plan for you. This post will throw some light on the importance of medical tests in the term insurance plan.
What Happens During A Medical Exam For Term Insurance?
The medical history of the applicant and his or her family would be examined and evaluated to determine what needed to be covered. The tests used are frequently dependent on the policyholder’s age. Measurements of weight and height, blood tests, and urine tests are frequently performed tests. Test profiles like the total blood count, differential count, bio, fasting plasma glucose, and hemoglobin would be displayed by blood tests.
Height and weight are used to calculate BMI, while cotinine levels are measured through urine testing. The tests may also check for HIV types I and II and lipid levels. If the person or a family member has a history of the disease, extra tests might be necessary. When taking these tests, it is crucial, to be honest about our drinking and smoking habits.
Importance Of Medical Test In Term Insurance
The outcomes of the medical tests that the insurer requests you take are used to determine the parameters of the insurance plan. Here are some explanations for why a medical examination is necessary for term insurance:
- For Higher Sum Assured
The sum assured is the amount of money that is paid to your nominees in the event that an unexpected circumstance arises while the term plan is in effect. The medical examination required for term insurance enables the insurers to learn all there is to know about your health. If you are generally in good health, they may then be able to offer you a higher sum assured. The lesser sum assured offered by term policies without a medical exam is typically insufficient to support your family financially.
- In Determining Premium Amount
Determining the amount of premium you must pay for your term plan is the insurer’s main concern. So, before determining how much of a premium you should pay, the insurance provider needs to be aware of your medical condition. Your insurance premium will be cheaper if you are physically healthy. However, the risk factor is bigger if you have pre-existing medical conditions, which will result in a higher premium.
- For Avoiding Claim Rejection
If you believe that purchasing a term plan without a medical exam will allow you to save money despite having an existing condition, you are mistaken. If it is determined that the policyholder’s death was caused by a pre-existing ailment, the insurers would often deny the policy claim.
Factors That Can Get Affected By The Medical Test Of Term Insurance
Now that you are cognizant of why a medical test is essential in term insurance, let us take a look at a few of the policy attributes that get affected by the results of the medical test of a term insurance plan:
- Sum Assured: If your term insurance medical test shows that you are relatively healthy, then this will help you avail higher sum assured. However, if the insurance company finds you unhealthy, you will not be able to acquire the benefit of a higher sum assured.
- Premium Payable: In case you are healthy, your premium amounts will be lower than the policyholder who is suffering from a medical condition.
The Bottom Line
You can get the highest insurance protection by taking a term insurance medical exam. The insurance company will work with you to design a customized term insurance plan that will benefit you, in the long run, using the findings of the term insurance medical tests as evidence. This will make sure that you have enough coverage to protect your loved ones without worrying about financial instability.
