Often buying a term life insurance entails a medical examination from the insurance company. It is a crucial step that can significantly impact the policy’s terms and coverage. Life insurance companies rely on medical examination reports to assess the health and fitness of the insured party. It allows them to offer the best term plans coverage and set the premium accordingly.
In this article, we will examine the significance of a medical examination in obtaining a life insurance policy.
What Does the Medical Examination Assess for Term Insurance?
- The applicant’s and his family’s medical history shall be assessed to determine the coverage requirement.
- Subjective test based on a policyholder’s age
- Specific standard tests such as –
- Kidney function test
- Complete blood count
- Liver function test
- Fasting Plasma Glucose
- Lipid Profile
- Routine Urine test
- HIV
Further tests basis age/policy coverage
- ECG
- Treadmill test
- Determine BMI based on height and weight
- Disclosures concerning smoking and drinking habits are crucial during these tests.
- Frequent travellers are asked questions regarding travel history and COVID history or their symptoms.
What is the Standard Procedure for Medical Examination?
Once the applicant submits his application form, the insurance company coordinates with the applicant for a systematic medical examination.
- A list of medical centres in individual localities is provided to the applicant where they can get their medical examination done.
- The insurance company books the scheduled slot based on the applicant’s convenience and availability, and in certain conditions, home testing convenience is also made available.
Note-
- The insurance company bears the cost of medical examination for term insurance.
- A standard instruction is given, such as 8 hours of fasting is the usual requirement before going for the medical examination.
Medical Examination Report for Term Insurance Determines Some Policy Features
- Premium
The medical examination helps assess the risk perception of the applicant. If the medical examination detects any pre-existing medical conditions, the risk associated is considered higher, which can lead to a higher premium for your coverage. Therefore, it is always advisable to opt for term insurance at an early stage of your life, say in your 20s and early 30s, which helps you keep your insurance premiums down.
- Sum Assured
The medical examination for term insurance can aid you in getting a higher sum assured if the examination result is healthy. For getting the best term plan, it is always advisable to get your term insurance at an early age as you can get maximum coverage tenure with a healthy sum assured, which can secure most of the working as well as retirement year against uncertainties with well divided over the period low premiums.
- Claim Acceptance & rejection.
Claim Acceptance and rejection are associated with the medical examination. The insurance company determines the cause of death during claim settlements, especially when there is an untimely demise. And if it is revealed that there is a non-disclosure of a pre-existing condition in the application, the company can reject the claim based on that.
Therefore, while filling out your application, it is essential to reveal any existing or developing possible life-threatening disease to avoid any issues during claim settlement.
All these points may come across as a bit daunting. But, if you choose a reputed insurance policy like Tata AIA term policy, their team of experts will help clear all your confusion.
Conclusion
A medical examination is not just a formality but an essential step in obtaining your term insurance policy, as it allows the insurance company to assess the risk associated with your application based on your health, medical history, and lifestyle habits and determine the policy’s terms and coverage.
This assessment can significantly impact the premium payable, sum assured, and claim settlement. Therefore, it is crucial to provide accurate information and undergo a medical examination to secure the best coverage for your term insurance policy.
