A term life insurance is the cheapest form of life insurance that you can buy to protect your family’s future. It provides an impressive life cover at low premiums, depending on various factors like your income, liabilities and health condition.

Yes, you heard it right! Health conditions. Your insurer should be aware of your health status, to offer you the maximum benefits of the term life insurance. The primary benefit of a term insurance plan is the high life cover it provides at considerably low premiums. And these are calculated based on your health report. Although, there are few insurance companies which offer discounts if you undergo medical examinations, while several others do not make medical tests mandatory.

Often people also avoid undergoing medical examination due to paperwork, tests and more, without realising the importance and consequences of the same. Therefore, to make things more precise, we have listed some useful pointers stating the importance and repercussions of medical tests in term life insurance.

How are medical tests useful?

• Transparent communication between the insurer and policyholder: The prime objective behind such tests is to know the condition of your health in detail. If you have any existing condition, do mention it clearly in your term plan application. As it helps in determining the coverage and premium amount. Undergoing medical examinations also decreases the possibility of claim rejection. In return, the insurer will ensure that your family gets financially covered during challenging times.
A complete medical report comprises of Haemoglobin Count, Blood Sugar, Urine Test, Cholesterol, ECG and other tests. However, if the risk coverage amount is higher or if the policyholder belongs to a senior age group, then additional checks are required.

• Low-Risk Medical Summary: Healthy and fit people are a blessing for society. Going through medical tests and coming out with good reports, establish you as a healthy person. In such cases, you are considered a low-risk customer and the insurer also offer discounts in the premium amount of term policy.

• Customised Plans: Based on your needs as per the medical report summary, insurance providers offer customised term plans. There are various riders in term life insurance such as critical illness rider, child rider and more, which you can choose depending on your requirement.

Consequences.

• Rejection of the insurance claim: If you don’t take medical examination, then you have high chances of claim rejection. It is always better to keep your insurer informed about your health condition, and medical tests are the right way to do the same. Even if you don’t undergo a medical examination, you still have to give a declaration about your health condition in the application form.

• Coverage amount: An essential factor of buying a term life insurance is the high coverage that it offers. Your insurance coverage gets calculated based on the risk assessment of your health. And these tests help the insurance providers to know about the risk factor of your health. If you are healthy and fit, you will get a higher coverage amount, enough to keep your family financially secure in your absence.

• Higher premiums: A medical test gives assurance to your insurance provider about your health condition, and then your premium amount is decided. If you don’t have any health risk, your premium will be on the lower side and vice versa. However, if you think that you will get a term life insurance with a low premium, without undergoing any health-related tests, then you are wrong. As the insurance company always consider the risk factors and then calculate the premium, which could be higher than expected.

Now the question arises why some insurance companies provide term plans without the medical test if they are so important? The medical examinations advised during the application process are quite expensive and are solely borne by the insurer. Besides, the process becomes tedious and time-consuming, which usually drive customers away. Therefore, in a bid to cut costs and increase the business, insurance providers offer low-value term life insurance without any requirement of such tests.

To sum up, a substantial amount of coverage is only possible if your insurance provider has a clear picture of your health condition. In this way, the insurance company can adequately evaluate your premium amount, considering the risk perception. On the other hand, if they are not aware of your health status, then you might end up paying more premium amount for less risk coverage and have a higher chance of claim rejection. Therefore, be honest to your insurance provider, undergo a medical examination and have a secure future.

Source: https://bimakaro.in/