Term Insurance Medical Test

Term insurance plans can be bought online or offline. With the offline mode, you have to visit the insurer’s branch or meet with an intermediary and buy the policy physically. Under the online mode, you have to fill out the proposal form online declaring all the relevant information. Attach the relevant documents and pay the premium to apply for the coverage. The insurance company would assess your proposal form to check the risks involved and then issue the coverage.

However, in some cases, a medical test for term insurance is needed. The insurance company may ask you to undergo a health check-up before the policy is issued. Your medical health is assessed and then the insurance company decides to issue or reject the term insurance application.

Common Medical Tests Needed for Term Insurance

The actual term insurance medical test list depends on the insurance company, your age and the sum assured selected. However, some of the common term insurance medical tests include the following^{1 and 2} –

• Blood pressure
• Blood cholesterol levels or Lipid profile
• Blood glucose levels
• Body Mass Index (BMI) measurement
• Routine Urine Analysis (RUA)
• Electrocardiogram (ECG)
• Liver function test (LFT)
• Complete blood count (CBC)
• Chest Xray
• Ultrasonography (USG), etc.

Why Are Medical Tests Needed?

Term insurance plans are contracts of utmost good faith. While you are required to declare your past and existing medical conditions when buying the policy, some proposers might conceal or miss mentioning certain important facts or information. In other cases, individuals might not be aware of their current medical health to declare the same in the proposal form. This is where the term life insurance related medical tests becomes relevant.

Importance of Medical Tests in Term Insurance

Here are some points that depict the importance of term life insurance medical tests^{2 and 3} -

1. Informed decision-making:

The term insurance medical test allows the insurance company to assess the health risk of an individual and determine the risk of premature demise. The insurance company can make informed decisions about the premium to be charged and whether the coverage should be issued or not.

2. Reduces the possibility of claim rejection:

Once the medical tests are completed, the insurance company knows your medical health. The possibility of hiding about a health condition reduces. This may lower the chances of claim rejections.

3. Faster underwriting:

As the insurance company gets the medical reports, it can quickly complete the medical underwriting process and issue the policy without further delays.

4. Wider coverage:

If your medical reports show a good medical history with no health issues, you will be able to enjoy higher sum assured levels in your term insurance plan. Such optimal levels would help you get adequately insured and provide complete financial security to your family.

Factors Affected by Term Insurance Medical Test

Based on the reports of the term insurance medical test, the following policy parameters might be affected -

1. Premium payable

If the medical tests find an adverse health condition, the insurance company might charge a higher premium to compensate for the higher coverage risk. As such, the premium amount may be affected after the term insurance related medical tests.

2. Sum assured

If there are existing medical conditions which are detected in the health check-up, the insurance company might offer the policy coverage but at restricted sum assured levels.

On the other hand, if the report is clean and favourable, you might be allowed to choose a high sum assured for optimal protection.

3. Claim rejection

As the medical tests establish the medical condition of the life insured, the chances of claim rejections due to hidden medical deaths, are reduced.

How Is the Term Insurance Medical Test Conducted for BALIC (Bajaj Allianz Life Insurance Company)?

Like other insurance companies, BALIC specifies the age, the plan and the sum assured under which medical tests for term insurance become important and mandatory.

If you choose such plans, are older than the specified minimum age for medical check-ups, or opt for a high sum assured, you might have to undergo a pre-entrance health checkup.

The insurance company conducts the term insurance medical tests at one of its clinics and also bears the underlying charges. Once the reports are generated, they are sent to BALIC for medical underwriting of the proposer.

Depending on the medical reports, BALIC might do any of the following –

1. Revise the premium due to existing medical complications

2. Deny issuing the policy in the case of bad medical health

3. Restrict the maximum sum assured allowed under the policy

4. Issue the policy and allow the choice of a high sum assured if the medical tests give a favourable report.

What Is a Telemedical Examination for Term Insurance?

Thanks to the advancement of technology, video calls and phone calls might be used for medical check-ups of the life-insured. This is called Telemedical examination⁴.

Under Telemedical examination, the doctor might give a video call to the life insured and ask the relevant medical questions on the call. The video call also allows the doctor to see the life insured and assess if there’s any physical condition present.

Things to Remember About Telemedical Examination

Some things to remember about telemedical examinations are as follows⁴ –

• The call usually happens at a specified time and date which is predetermined between the insurance company and the policyholder.
• You should be in a place where there’s complete internet connectivity for a high-quality call
• The doctor might ask you to show previous medical reports, if any. Keep such reports handy

Do’s and Don'ts for Telemedical Interviews

Some useful tips for telemedical interviews are as follows⁴ –

Do’s

• Answer all the doctor’s questions honestly
• Disclose any previous health condition that you might have had
• If you don’t have information about any particular question, let the doctor know of the same
• Give clear and coherent answers so that the doctor understands what you are saying

Don’ts

• Don’t hide any material health-related information or lie about the same
• Don’t rush to complete the call

Conclusion

Check the requirement and term insurance medical test list when buying the policy. If required, undergo the medical check-up at the insurer’s clinics when buying the term plan. If available, telemedical examinations can prove convenient as you can get the check-up done right from your home.

So, understand the concept of medical test for term insurance and see if it is required or not.

FAQs

1. Is opting for a medical test mandatory for term insurance?

Medical tests for term insurance are not mandatory for all policies. It is required depending on the type of policy that you buy, your age, the sum assured selected and also if you have any adverse history of medical condition.

2. Do we need to submit the medical history or records to the insurance company?

If you have any previous medical history or ailments that you suffered in the past, you have to disclose the same in the proposal form. However, previous records might not be required. Instead, the insurance company might ask you to fill out a separate questionnaire or undergo a medical check-up.

Reference

1. https://www.businessinsider.in/personal-finance/news/term-policy-all-you-need-to-know-about-medical-tests-which-decide-the-premium/articleshow/104638960.cms

2. https://www.forbesindia.com/article/brand-connect/what-medical-tests-are-required-for-term-insurance/64491/1

3. https://www.forbes.com/advisor/life-insurance/medical-exam/

4.https://www.bajajallianzlife.com/life-insurance-guide/term/what-is-a-telemedical-examination-for-term-insurance.html#:~:text=The%20concept%20of%20Telemedical%20Examination%20in%20Term%20Insurance&text=The%20doctor%20makes%20a%20video,risk%20and%20current%20health%20condition.

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