life insurance without medical exam is used as a catchy term to attract prospective buyers. Buyers, you must understand is it worth buying insurance without going with the medical tests? You must also know the importance of Medical test for Term insurance.
The main intention of taking the medical tests is to buy best term insurance plan and to determine the applicant’s health status. Only depending on the test results the insurance company plans a customized insurance plan. Yet, if you get into the trap of the advertisements and go for term plans that do not require any medical tests while taking the term insurance plan, it is certainly with risks. It may have repercussions, may be not now, but surely in the long run. Now, let us demystify the gimmick of advertising and disclose the fact behind it.
Claim Rejection stands to high probability
The medical tests exemption does not imply you camouflage your health problems beneath the carpet. You need to make a statement in the application form about your health condition. Hiding a health condition can cause your insurance cover severe consequences. To be precise, nearly 2-3 % of claims end in trash every year due to skipping of medical tests.
Pay More Premiums
Insurance company decides on risk perception the premium. So, taking medical tests before getting a term policy is helpful as it actually reduces your premiums. For instance, a person going for a medical checkup and comes with normal sugar level is expected to pay lower premium than a person with a borderline sugar. On the other hand, on skipping medical tests, both will be paying the same amount and it is a loss for a healthy applicant. Eventually, lower premium cost with fitness certificate is the best.
Lesser Risk Coverage
Policies encouraging ‘No Medical Test Required’ are low-value plans. Even when you are young and healthy, no one is going to provide more than 5 lakh cover even without a medical test. Therefore, if you wish high insurance cover, medical examination is necessary.
So, buying an insurance policy means to go ahead for the medical test. There is no escaping eventually from the medical tests. In life insurance policies, the sum assured is higher, when the premium is higher of the policy holder. Conversely, the premium can be lower in some cases, when the sum assured is higher. For instance, a 30-year non-smoker male for a Rs. 40 lakh policy as online premium is higher to a Rs 50 lakh policy premium. This is because insurance companies offer policy holders discount on undergoing a medical test.
Most life insurance policies online term plans for Rs 50 lakh sum assured are without medical tests and are based on a self- declaration by the policy holder. However, the premium is high in such cases, as the risk is equally higher. Online term plans of some companies without medical tests are even for Rs 75 lakh, but the premium is also really high.
A single reason for buyers avoiding a medical test is the fear of rising premiums due to chronic ailments such as heart trouble or diabetes. Going for medical test is beneficial as the claims do not get rejected on medical grounds at the right needy hour.
We all are aware of the prominence of insurance in our lives and we discuss about it with family, friends, buy and keep equipped with idea on its benefits and lay our hands.
Term insurance is relatively new to Indians and so many questions come to one’s mind. Many think and inquire about importance of Medical test for Term insurance.
what is term insurance?
Actually, a term insurance plan is the protection plan in the purest form and does not have any risks associate. Paying a fixed premium amount for a span of time means you purchase a term insurance plan. Once the span of time or fixed period expires, you are not under the coverage of the premiums at the previous rate unless you acquire a new premium with a new coverage and term. However, in case the insured faces death within the term insurance period, the beneficiary receives all the benefits.
Thus the term insurance is applicable and the cover opted in the event of death is irrespective, whether it is illness or accident, the beneficiary is entitled to get the claim. The term plan also come with riders that offer additional benefits like critical illness rider, permanent disability rider or accidental death benefits.
I hope you got the idea of the importance of Medical test for Term life insurance.
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