If there is anything that the current pandemic has put in sharp focus, it is the fact that it is vital to be prepared for the uncertainties of life. One of the most effective means of achieving this is by availing a suitable term insurance plan that can provide adequate financial security to our loved ones. In fact, with the availability of online term plans, availing insurance has become easier than ever.
However, the ease of availing of term insurance prompts a common question among insurance seekers: Is it mandatory to undergo medical tests? Let us resolve this query by exploring the benefits of term insurance as well as the possibility of availing term plans without medical tests.
Can I Buy Term Insurance Without Medical Tests?
Before availing term insurance of any kind, it is common practice to undergo a thorough medical examination. This is done so that the insurance company can have a better understanding of your overall health condition and determine your term insurance premiums based on this factor. Hence, if you have a family history of certain illnesses or have a pre-existing medical condition, your premiums will be impacted. Medical tests are also an assessment of the risk that your insurer will be bearing by providing you with said term life insurance.
While most insurance companies make such medical tests mandatory, it is possible to avail term insurance plans without medical examination. In certain cases, the medical test can be done away with based on factors such as your age, the sum assured chosen and the discretion of the insurance company. However, it is mostly recommended that you opt for a medical test before buying term insurance in order to avoid undisclosed medical conditions leading to claim rejection later in the policy.
Benefits Of Term Insurance
While discussing the topic of medical tests for term insurance, it might be worth revisiting the reasons why online term insurance is a valuable choice to make in the first place. Not only have online term insurance plans made our lives more convenient, but also term plans in general offer a variety of benefits such as:
• Affordable Premiums
Compared to traditional life insurance policies, term insurance premiums are comparatively less expensive and more economical for the average individual and family.
• Maturity Benefits
While it is common knowledge that term insurance plans offer death benefit to the beneficiaries of the policyholder, it is less known that few term insurance plans also offer survival benefits also known as Return of Premium (ROP). If the insured survives the tenure of the policy, certain plans offer maturity benefits.
• Tax Benefits
Term plans fall under the list of policies mentioned under Section 80C of the Income Tax Act, 1961. Hence, the premiums paid towards the policy can be considered as a deduction from the taxable income. Moreover, the death benefit offered by the term insurance is deemed tax-free under Section 10 (10D) of the Income Tax Act, 1961. The above-mentioned benefits are subject to provisions of the Act, as amended from time to time.
With term insurance riders, you can avail more benefits with your coverage and prepare for a number of unfortunate circumstances. With riders such as disability cover, critical illness cover and waiver of premium, you can extend your term plan coverage as per your specific needs at nominal extra costs
How To Buy Term Insurance Without Medical Tests
For the most part, insurance companies tend to ask potential policyholders for a medical examination before going ahead with the insurance process. This helps the insurers gauge the risks involved in the process and establishes trust regarding your health conditions. However, it is important to note that a number of insurers do not make medical examinations mandatory if you are in your early 20s or 30s and have a healthy lifestyle and habits.
Things To Consider When Buying A Term Plan Without Medical Tests
While most insurers make medical examinations mandatory for availing term insurance, there are certain conditions under which you might not be required to do so. However, even if you purchase term insurance without having to undergo medical tests, it is important to keep a few points in mind. It is best to disclose any health conditions, illnesses and lifestyle habits that might be of concern, to your insurer. Rest assured that this information remains confidential. The purpose that this disclosure serves is that, in case there were a claim to be made, the process would be smooth for your nominee if all necessary disclosures have been made well in advance.
Why Are Medical Tests Important For Term Insurance?
While having to undergo medical tests before purchasing term life insurance might seem like a hassle, the truth is that the process benefits both the insurer as well as the insurance seeker. For the insurer, your medical tests help ascertain their extent of risk by providing you with insurance protection. However, for you, the insurance seeker, undergoing a medical test can have these vital benefits –
• Improves Claim Approval
When your insurer has a clear idea of your health conditions, it improves the chances of your online term insurance claims being approved. In case you keep your existing health conditions under wraps, it can lead to consequences such as rejection of the claim made by your beneficiaries.
• Lower Premiums
Premiums are determined based on your health conditions. In the absence of a medical test, it is not possible for an insurer to ascertain the risk and hence, might result in higher premiums.
• Extensive Coverage
More often than not, insurers that provide term insurance without making medical tests tend to offer low-value coverage that may or may not be adequate for the insured. In order to avail an extensive coverage that adequately provides for the security of your loved ones in the future, it is advisable to go through a medical test as per the terms and conditions stated therein and decide on a plan that provides a coverage that is suitable to your needs.
While it may be possible to avail term insurance without having to undergo medical examination, it is widely recommended that you opt for the process anyway. Not only do medical tests aid the insurer in gauging the risks associated with your coverage, but they also help you avail the adequate amount of coverage and lower your chances of term insurance claim rejection.