While buying a term insurance policy online, you may have come across many ads that read ‘no medical check-up’ required. But, is it worth buying a policy without check-up? Read on to know the answer.
When you are looking to buy a new term life insurance policy, you may come across various promotional offers run by insurers where they allow people to buy a plan without undergoing a medical test. This may seem an attractive offer as you may think you can save your time, effort and money in undergoing the test and get the desired coverage. However, such policies are often a scam and a fraud scheme.
When you buy a term plan, a medical test is necessary. The primary reason why many reputed insurance companies insist the buyers to undergo the test is to assess the exact health condition of the buyer so that they can provide a customised plan to best suit their needs. If you are wondering what does the medical test constitute, then you must know that it greatly depends on different factors such as, age at the time of buying the policy, family health history, pre-existing medical condition, etc.
What does the medical test for term insurance consist of?
The nature of the medical test or health check-up for term insurance varies from case to case. The insurance companies generally determine the tests based on the details you mention in the application form. The tests are decided depending on your lifestyle habits, medical history, current health condition, and existing illness. But, generally, during a term insurance medical check-up, you must undergo the following tests
- Height, weight and BMI (Body Mass Index)
- Complete Blood Count, HIV, urine test, blood glucose test, blood pressure, etc.
When is a medical test for term insurance compulsory?
As per the IRDA (Insurance Regulatory and Development Authority) mandate, a medical test for term insurance is mandatory under either or both cases –
- If you are buying a term plan with a sum assured of 10 lakhs or more
- If you are aged more than 35 at the time of buying the policy
If you are nursing any pre-existing illness or have a family history of any critical illness like cancer, or any other hereditary conditions, you must undergo the medical test, irrespective of the sum assured and the age.
Why is medical check-up necessary for buying a term insurance policy?
The primary objective of the insurance companies conducting the medical test for term insurance buyers is to determine the premium that the buyer must pay for the plan. The insurance business works on the concept of ‘risk perception.’ So, it is vital for the insurer to know how much risk they will be carrying for providing you the insurance cover and decide the premium accordingly. If you pass the medical test with flying colours, it would mean that you are healthy and so the premium will be lower.
Another critical aspect of a term insurance policy is the sum assured. It is the amount that the insurance company is obliged to the family member in the event of your unfortunate demise within the policy period. By conducting the medical test, the insurer can know everything about your health condition and they can offer you a higher sum assured for a lower premium if you are healthy. Generally, the term plans that do not require a medical test offer lower sum assured, which means the benefits that your family receives may not be enough to cover their expenses.
If you think you got a good deal despite having a pre-existing condition by buying a policy without undergoing a test, you may be wrong. In most cases, the insurance companies tend to reject the policy claim if they find that the death is caused by a pre-existing condition.
Now that you are aware of the importance of a medical test, make sure that you undergo the test and purchase a right policy that provides adequate coverage based on your health condition.