Medical Tests Required for Term Insurance
Term insurance plans provide coverage against death during policy term. As such, before the insurance company issues the plan, it assesses the mortality risk of the individual. This risk is determined by your health condition. As such, the insurer assesses your health to determine whether you are healthy or not. So, under various scenarios the insurance company would ask you to undergo a list of medical tests to assess your health, for eg; if you opt for a very high sum assured, if your age is high, or if you have declared an adverse medical condition in proposal form.
What are the Medical Tests Needed for Term Insurance?
The medical tests needed for term insurance depend on the insurance company and the medical condition/disclosure provided by the proposer. However, some of the common tests that all insurers use includes the following –
|BMI tests.||The BMI test measures your height and weight to calculate your Body Mass Index (BMI). This helps the insurer assess whether you are underweight, overweight or have a normal weight.|
|Urine Test||The Urine Analysis Test is conducted to check your urine and find if you have high blood glucose levels and other ailments.|
|Complete Blood Count (CBC)||This test counts your blood cells, i.e., red blood cells and white blood cells. This helps the insurer ensure that your blood work is normal and that you don’t suffer from any hidden ailment|
|Blood Sugar||Diabetes is a major condition that impairs health. That is why blood sugar levels are an important metric that insurers check to find out whether you are diabetic and if you do, the type of diabetes that you suffer from|
|Kidney Function Test||The Kidney function test helps the insurer check the functionality and normalcy of your kidneys|
|Liver Function Test||The Liver function test checks the health of the liver to find out if there are any issues or not|
|Lipid Profile||The Lipid profile checks your blood cholesterol levels to rule out any problems and their effects on your body|
|TMT||TMT checks your heart health and functioning. It checks your heart’s capacity at intense stress levels|
|Chest X-Ray.||A Chest X-Ray gives insight into the working of your heart, lungs and rib cage. In the case of minor health risks involving blood vessels, the X-Ray can help|
|HIV Test.||This test is done to check if the insured is suffering from HIV/AIDS|
|Ultrasonography||Ultrasonography checks the internal organs, usually the digestive and reproductive systems. It tells whether the organs are working effectively or not.|
|Echocardiography||Echocardiography checks your heart health and functioning. It involves various tests like the 3D and stress echocardiography.|
Why are Medical Tests Needed?
Insurance underwriters, those who analyze and evaluate the risks of insuring individuals and groups, assess the risks of providing term insurance coverage to you based on your age, health and lifestyle habits and other health related disclosure made by the proposer. To ascertain the state of your health, the life insurance company has to carry out medical tests and quantify the extent of risk they are carrying by agreeing to provide you with term insurance protection.
Medical test for term insurance is subject to the discretion of the insurance company.
A medical test also ensures that you don’t have any undisclosed medical condition that you have not declared or are not aware of, that may lead to claim rejection in the future. Though the medical tests may report your current health and your predisposition to some diseases and in turn may affect your term insurance premium, it’s always safer than carrying the risk of claim rejection. Therefore, undergoing medical tests before buying term insurance creates a win-win situation for both the insurer and the insured.
Factors Affected by Term Insurance Medical Test
Depending on the findings of the medical tests conducted, the insurance company might propose a change in the original insurance proposal. The following factors can be impacted by the findings of the medical tests –
● Premium payable
If any adverse medical condition is discovered, the insurance company may revise the premium charged for the policy. This is called premium loading, and it is done to compensate the insurance company for the high level of mortality risk that it underwrites by issuing the life insurance policy.
● Sum assured
The insurance company might restrict the sum assured allowed under the policy if there is any medical condition that enhances the mortality risk. This would allow the insurer to reduce its risk exposure.
● Claim rejection
The possibility of claim rejection can be minimized since the insurance company would know about any adverse medical condition that you might have, prior to issuing policy and assuming the risk.
● Policy issuance
If the insurance company finds severe medical complications that increase the mortality risk considerably, it might not underwrite such risks. In such cases, the insurer might not issue the coverage at all.
How is Term Insurance Medical Test Conducted for Bajaj Allianz Life Insurance Company (BALIC)?
Similar to other life insurers, BALIC too will require tele-medical or physical tests to ascertain your risk profile.
In case of physical tests, you may have to fix an appointment at one of the networked laboratories of BALIC. There, you can get a medical test done.
After the tests are done, the reports are shared with the insurance company. Once BALIC underwrites your proposal basis the medical examination report, the policy is issued.
Undergo the Term Insurance Medical Tests to get the Suitable Coverage
When buying a term insurance policy, don’t get scared by the requirement of medical tests. Undergo the tests required so that you become eligible to opt for the required sum assured, and you get the coverage for your financial security.
1. Who pays for the medical tests?
Usually, the insurance company pays for the medical tests. However, if the customer rejects the policy application post medical completion, the charges for the medical tests will have to be borne by the customer.
2. Is the medical test mandatory for term insurance?
Medical tests may or may not be mandatory. Some insurance companies might require a medical check-up to assess the health risk.
3. Do we need to submit the medical history or records to the insurance company?
The medical history is an important fact that should be disclosed in the proposal form when you are buying the life insurance policy. Medical records, on the other hand, can be submitted if the insurer requests them1.
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