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Why is Medical Test Important for Term Insurance

Term Insurance is one of the most reasonable forms of life insurance available with compact and pocket-friendly packages. There are various types of term insurance available like normal, increasing, or decreasing categories of insurance, which provide a good number of financial benefits to the family and dependents of the insured in his absence due to death or medical contingencies.

There are many term policies available online and in the market that specify “No medical screenings required” to buy a term plan. This is a popular sales and marketing gimmick processed and initiated by many insurance companies to lure customers who feel they have the burden of getting cumbersome medical tests done. The other misconception is that if the individual goes for medical screening, and if something comes up, it may affect the sum assured. It may also increase the premium payable towards the term insurance. So, it is best to avoid it.

This is a misconception floating in the market of term insurance, and it is highly beneficial if one gets a medical screening done before buying a productive and hassle-free term insurance plan.

Benefits of getting a medical test done before buying a term life insurance plan

Medical screening before buying term insurance is necessary. For the benefit of the insured, even if not asked by the insurance company, he must get a test done and submit the report while buying the term plan.

A proper declaration can help him unravel health issues and hazards he is currently facing to give the correct picture even if it results in fluctuation of premium and sum insured. By hiding a medical condition, one may save temporary time and effort but may fail to derive actual benefits of getting term insurance done on his life. Insurance companies wouldn't hesitate to reject claims based on a medical condition that can never be proved otherwise if no pre-medical screening was done.

  • Transparency between Insurer and the Insured

    Medical screening makes things very clear between the customer and the insurance company, thus building a stronger foundation and making things easier for both parties in the future.

  • Faster Claims Settlement

    Claims can be rejected based on medical grounds or conditions which may or may not prevail if a medical test is already done and submitted at the point of purchasing the term plan. It can prove that the medical contingency grew over time rather than existing for a long time. Thus, it speeds up the claim settlement procedure and subsides the risk of rejection of claims.

  • Benefits of Customized Plans

    The insurance companies can suggest the best term insurance plans and additional riders to the customer based on his medical report. This could be quite advantageous for the policyholder in the long run as the plans are specifically customized as per his current health and issues related to it.

  • Proof of Low-risk Medical Report

    The reports submitted at the time of purchasing the term policy are legal proof of the medical condition of the policyholder and thus saves him from the undue claim rejection, which otherwise can create havoc for the dependents of the policyholder. 

    A few repercussions of not getting a medical test done before buying term insurance are as follows:

    When insurance companies offer a medical screening before selling the term policy, it becomes a tedious, time-consuming process for the individuals which they generally avoid. Also, the assumption that this may lead to an increase in the premium to be paid further demotivates them to get a medical test done. But we need to understand the consequences of buying a term insurance plan if no medical test is done:

  • Claim Rejection

    In a situation of no medical test, the insurance company can reject the claims of term plans assuming that the policyholder had pre-existing medical conditions that were never diagnosed or proved at the time he bought the policy.

  • Low-Risk Coverage Benefits

    No medical screening also means low coverage. If the sum assured increases, it comes with a mandatory medical screening if any person is looking to avoid the hassle of getting a medical test conducted. He may have to settle for a lower risk coverage amount.

  • Higher Premium

    The main aim of avoiding a medical test is the fear of an increase in the amount of premium. But otherwise also the same applies if no medical screening is conducted. Sum assured is lower, and the premium is paid higher. Benefits of the same are extended to people who go through medical screenings.

    A few terms plans and requirement of medical tests before buying Term Life Insurance Plans:

    Risk Coverage 18-30 years of age 31-40 years of age 41-50 years of age
    Up to Rs 2 Lakh Nil Nil Full Medical Report
    Rs 2-5 Lakh Nil Full Medical Report Full Medical Report
    Rs 5-10 Lakh Full Medical Report Full Medical Report + HIV Report Full Medical Report + HIV Report
    Rs 10-20 Lakh Full Medical Report + HIV Report Full Medical Report + HIV Report Full Medical Report + HIV Report + Blood Serum Test Report
    Rs 20-30 Lakh Full Medical Report + HIV Report Full Medical Report + HIV Report + Blood Serum test Report + Routine urine test analysis Full Medical Report + HIV Report + Blood Serum test Report + Routine urine test analysis
    Rs 30-40 Lakh Full Medical Report + HIV Report Full Medical Report + HIV Report + Blood Serum test Report + Routine urine test analysis Full Medical Report + HIV Report + Blood Serum test Report + Routine urine test analysis
    Above Rs 40 Lakh Full Medical Report + HIV Report + Blood Serum Test Report Full Medical Report + HIV Report + Blood Serum test Report + Routine urine test analysis Full Medical Report + HIV Report + Blood Serum test Report + Routine urine test analysis + comprehensive trail-making test

What comprises of medical tests?

  • The full medical test comprises Blood sugar on fasting, ECG, blood pressure and blood count test, kidney, and liver diagnostics
  • When the insurance company asks for a basic and mandatory medical test, it could be based on: 

    • Fasting Plasma Glucose
    • Bio
    • Differential blood count
    • Complete blood count
    • Blood and urine test 
    • Height, weight and BMI test
    • Lipid profile test
    • Blood serum test

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