The COVID-19 pandemic has resulted in a significant shift in various aspects of life, including insurance policies. Normally, term insurance policies were often provided without the condition of a medical test. However, in the present situation, undergoing a physical examination has become mandatory. This article will discuss the changing landscape of term insurance without medical tests and explore the reasons behind this change. Moreover, we will also discuss the challenges of term insurance with medical tests.
It used to be possible to get term insurance policies without undergoing a medical test before the COVID-19 pandemic. Insurance companies primarily depended on the details given by applicants through self-declaration forms and questionnaires. The strategy was advantageous for people who liked an easy insurance purchase process. Particularly individuals who were young, in good health and were looking for insurance to cover smaller expenses.
As a standard practice, insurance providers then started have started implementing medical tests for term insurance policies. The insurers are called for a medical test at the centers alloted by the insurance companies. The cost of the medical tests is borne by the insurance company if the person is approved for buying the term plan and in case of rejection, the costs are borne by the person being tested. Medical tests play a crucial role in the process of buying term insurance for both policyholders and insurance companies. Here's why they are important:
even though medical tests for term insurance policies post-COVID-19 have their advantages, they do present certain challenges. The following are the challenges that can be faced by applicants of term insurance policies:
The following is the list of medical tests and examination that a future poicyholder might have to go through:
Not all insurance policies will require all of these tests, and some applicants may ned additional tests based on their medical history and risk factors. It's essential to work with the insurance company or a medical professional to determine which tests are necessary for your specific policy application. Additionally, the results of these tests can affect your premium rates and coverage eligibility, so it's important to be honest and accurate in your health disclosures during the underwriting process.
The cost of medical tests in India can vary widely depending on the location type and number of tests etc. required for the assessment of a future policyholder's health. Here is a general estimate of the cost range for some common medical tests:
The cost of medical tests is typically borne by the applicant when applying for term insurance. If the applicant successfully clears the tests and is eligible to buy the insurance policy, the insurance company may reimburse the cost of the tests. However, if the applicant is not approved for the insurance coverage, the cost of the tests will not be covered by the insurance company, and the applicant will be responsible for the expenses incurred. It's essential to check the specific terms and conditions of the insurance policy and the reimbursement process with the insurance company.
As we all know an individual has to undergo a pre-policy test to buy a term insurance plan. In this process, if the insurer comes across any pre-existing disease or any health issues that can lead to death, the insurer views the policyholder as a high-risk individual. In this case, the insurer makes sure that they will only cover the death caused due to any other reasons such as accidents and not cover death caused by any pre-existing diseases.
This does not mean that a person with a pre-existing disease is not eligible for term insurance. Such individuals will get the term insurance with a death benefit, excluding any pre-existing disease or health condition.
Significant changes have occurred in the insurance industry due to the COVID-19 pandemic, especially concerning medical test requirements for term insurance policies. So, it is mandatory to get medically examined before you purchase a term insurance policy. Apart from this, it is advised that you buy a term plan in your early years when you are younger and healthier.
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