Term Insurance is a financial protection plan designed to provide financial safety to the loved ones of an individual after their demise. This plan is easy to understand as benefits will be paid only if the insured dies during the tenure except in TROP (Term Plan with Return on Premium), where some percentage of the premium is returned.
No, it is not possible to purchase a term insurance plan without undergoing a medical test. Your current health condition is one of the key factors in determining the premiums that you will have to pay for your term plan premiums. Some term insurance plans might highlight that you can purchase them without undergoing a pre-policy medical examination. Remember that such policies can be purchased only after taking basic medical examinations such as blood tests, urine tests, BMI, and Urine tests.
As a standard practice, insurance providers then started implementing medical tests for term insurance policies. The insurers are called for a medical test at the centers allotted 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:
The following are the challenges that can be faced by applicants of term insurance policies:
The following is the list of medical tests and examinations that a future policyholder might have to go through:
Not all insurance policies will require all of these tests, and some applicants may need 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:
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 as the premium charged is low.
Check and compare plans from 21 IRDAI-approved term insurance providers before purchasing a term plan.
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Priya has been in the content writing industry for over 8 years. She has been religiously following the insurance sector since the start of her career which makes her an avid insurance expert. Her forte lies in health, term, and life insurance writing, along with her knowledge of the latest developments in the insurance sector.