Medical Test for Term Insurance

TeamAckoJul 14, 2024

Investing in a Term Plan is one of the smartest decisions you can make to ensure the financial security of your loved ones. However, before purchasing this plan, you must undergo a series of medical tests to determine your health status. These tests help insurance companies evaluate the level of risk you pose as a policyholder and determine the premium amount you'll have to pay. Understanding the medical tests required to buy Term plans in India is critical, as it can impact your policy's cost and coverage. In this article, we'll provide you with an all-encompassing guide about medical tests to buy term plans in India

Contents

• Why are medical tests necessary for Term insurance?
• Who needs to undertake medical tests for Term insurance?
• What are the medical tests required for Term Insurance?
• Benefits of Medical Tests for Term Insurance
• What is the process of medical tests for buying Term Insurance?
  • Interview
  • Standard sampling
• 9 Tips to prepare for a medical test
  • Stay Hydrated
  • Medication Awareness
  • Avoid Alcohol and Nicotine
  • Ensure Adequate Sleep
  • Skip Salty Foods
  • Limit Physical Activity
  • No Caffeine 
  • Appropriate Clothing
  • Organise Medical Records
• Legal and Ethical Considerations of Medical Testing
• How to Dispute and Resolve Issues with Medical Test Results
• How to buy Term Insurance?
• 10 Points to Remember While Buying a Term Plan
• Frequently Asked Question

Why are medical tests necessary for Term insurance?

Prior to purchasing a Term Plan, medical exams are typically done to determine the client's health risk. This helps in verifying insurance claims and confirming the insurance declarations. They may vary from one case to another depending upon various factors like age, existing illnesses, smoking or drinking habits, occupation and gender. The sole purpose of these parameters is to identify high-mortality cases. The higher the probability of mortality, the higher the premium charged.

Who needs to undertake medical tests for Term insurance?

The need to undergo a medical examination will vary from one insurance company to another. Some companies might not require the client to undergo medical tests and other companies might have it as a mandatory condition. It is advised to go through the conditions carefully before you buy a Term Plan. Medical tests are needed in the following cases.

The sum assured exceeds Rs 10 Lakhs.

The client is above the age of 35 years.

In case of a family medical history of underlying illnesses, the applicant may require a medical test.

Some lifestyle choices also need medical tests especially for smokers as they are at a high risk of developing various illnesses.

What are the medical tests required for Term Insurance?

Following are the tests requested before issuing a Term Insurance Plan.

Benefits of Medical Tests for Term Insurance

Some benefits of getting medical tests done for Term insurance are as follows.

• Avoid rejection of claims
  The medical tests are evidence of the client’s overall fitness. This prevents claim rejection which often arises due to discrepancies in the client's information submitted during the purchase of the policy.
  In simple terms, undergoing these tests provides a reliable medical baseline of your health, enhancing the credibility of your application and minimising the risk of disputes over undisclosed health issues.

• Access client’s mortality risk
  The insurance company aims to verify the physical fitness of the client because in case of underlying illnesses, the probability of a claim is high. This process is vital for setting fair policy terms and preventing future financial losses for the insurer.

• Affordable premiums
  The insurance company aims to provide a term plan at affordable premiums. This can only be done after a medical examination because a pre-existing health condition increases the chances of mortality. This is why young healthy individuals benefit the most from buying a Term Plan as the premiums are affordable and the plan does not come with any added terms and conditions.

• Adjustments in coverage
  Clients with normal health are provided with higher coverage amount in insurance. This also helps in attaining affordable premiums. If the client has any ailment that increases the chances of mortality, there might be a limit to the sum assured. Please read the policy document carefully before making a purchase.

• Improved Policy Customisation 
  With precise health information, insurers can tailor coverage options to fit the specific needs and risks of the client. For example, individuals with no significant health issues might get additional benefits and riders at a lower cost. 

• Faster Claim Process
  When medical tests are conducted before issuing the policy, insurers have a well-documented health record of the insured from the outset. This detailed pre-existing data can streamline and speed up the claim processing time as the insurer has fewer reasons to delay claims for additional medical verifications or disputes over the insured's health condition at the time of policy issuance.

What is the process of medical tests for buying Term Insurance?

Once you submit the application, your insurer will assign a medical expert who will help you complete the process correctly. Insurers have tie-ups with various clinics and you can choose the nearest location and time based on your comfort. You will also have an option to schedule a test at home or office. Here are the steps involved in the process of medical test for buying Term Plans.

Interview

You will be asked various questions related to past medical history or current medications. The contact of the present physicians may also be asked. This information should be provided cautiously as it may be verified later.

Standard sampling

Various samples are collected for further medical investigation. Some basic measurements like body weight and height are also noted. Based on this, an electrocardiogram may be performed. The results of these tests can be used to verify the information given by the client in the interview.

The main objective of these tests is to identify the health quotient of the client. Misleading information at this stage may result in policy rejection. Therefore, being honest is crucial.

9 Tips to prepare for a medical test

Here are some tips to prepare for a medical test to buy a Term Plan.

Stay Hydrated

Ensuring adequate hydration before a medical test is crucial. Drinking plenty of water facilitates easier collection of urine and blood samples. Water helps flush out toxins from the body, leading to clearer test results. Aim to drink at least eight glasses of water the day before and on the day of your test to ensure you're adequately hydrated.

Medication Awareness

Before your medical test, avoiding any medications that could influence your blood pressure readings is important. Some over-the-counter drugs, such as decongestants and some types of pain relievers, can raise your blood pressure. Discuss with your doctor which medications you should temporarily discontinue to ensure accurate test results.

Avoid Alcohol and Nicotine

Alcohol and nicotine can significantly affect various body functions, impacting blood pressure and heart rate. To get the most accurate readings, avoid consuming alcohol and using nicotine products at least 24 hours before the test.

Ensure Adequate Sleep

A good night's sleep is vital for maintaining normal blood pressure levels. Lack of sleep can artificially elevate blood pressure, potentially affecting your medical test results. Aim for 7-9 hours of quality sleep the night before your test.

Skip Salty Foods

High-sodium foods can lead to dehydration and alter your urine's concentration. To avoid these effects, avoid salty snacks and meals in the 24 hours before your test. Opt for fresh, unprocessed foods that are low in salt.

Limit Physical Activity

Vigorous exercise can affect your heart rate and blood pressure. To ensure these variables remain at their natural resting state during your test, avoid intense physical activities like running or heavy lifting the day before your test.

No Caffeine 

Caffeine is a stimulant and can affect heart rate and blood pressure. Avoid drinks like coffee, tea, and some soft drinks containing caffeine on your test day to prevent any interference with your results.

Appropriate Clothing

Wear comfortable clothing with sleeves that can easily be rolled up. This small preparation can make the process of drawing blood simpler and quicker, reducing any unnecessary stress during the test.

Organise Medical Records

Having all your relevant medical records handy can speed up the process and ensure the healthcare professional conducting the test has all the necessary information. This includes past test results, current medications, and other pertinent health information.

Following these tips will help ensure that your medical test results accurately reflect your health status, making your term insurance application smoother.

Legal and Ethical Considerations of Medical Testing

When it comes to medical testing for term insurance, several legal and ethical considerations must be upheld to protect applicants.

Legally, insurers must ensure that all medical testing complies with local healthcare regulations, including maintaining confidentiality, obtaining informed consent, and ensuring that the tests are necessary and appropriate for assessing an insurance policy.

Ethically, insurers must treat all information gathered through medical tests with the highest level of confidentiality. This involves securely handling and storing medical records and ensuring that only authorised personnel can access this sensitive information. The ethical obligation also extends to non-discrimination, meaning that insurers should not use information obtained from medical tests to deny insurance coverage unjustly. Instead, it should be used to assess the risk and determine fair premium rates accurately.

Furthermore, applicants have the right to know why certain medical tests are required and how their results will be used. This transparency is crucial in building trust between the insurer and the insured, ensuring that applicants feel respected and valued.

How to Dispute and Resolve Issues with Medical Test Results

Suppose you believe there has been an error in your medical test results or disagree with how the insurance company has interpreted them. In that case, there are several steps you can take to dispute and resolve these issues:

• Request a Review: Begin by requesting a formal review of your medical test results from the insurance company. Give them specific reasons why you believe the results are incorrect or have been misinterpreted.

• Second Opinion: You can seek a second opinion from another qualified medical professional. An independent review can provide a clearer picture of your health and either confirm or dispute the initial findings.

• Submit Additional Information: If the issue is related to missing or incomplete information, you can submit additional medical records or documentation that may help clarify the situation.

• Use Formal Appeal Processes: Most insurance companies have formal appeal processes that allow you to challenge decisions based on medical test results. Familiarise yourself with these procedures closely to ensure your appeal is considered.

• Legal Advice: If the dispute cannot be resolved through internal processes, it may be necessary to seek legal advice. A lawyer specialising in insurance law can provide guidance on your rights and the best course of action.

• Regulatory Assistance: If you believe the insurance company has acted inappropriately or unethically, you can contact your local insurance regulator. These bodies can investigate complaints and ensure that insurance practices comply with legal and ethical standards.

Handling disputes regarding medical test results requires a clear understanding of your rights and a proactive approach to communicating with your insurer. Following these steps ensures that your concerns are addressed fairly and that your insurance coverage reflects your true health status.

How to buy Term Insurance?

Both online and offline options are available to purchase a Term Plan. Online purchase saves you from the hassle of physical documentation. Better comparisons can also be made among the several plans available that meet your requirements. Here are steps to buy a suitable term plan.

• You must choose a plan according to your requirements. The exclusions and inclusions of term insurance must be understood carefully.

• Close attention should be paid to the sum assured, the frequency of premiums to be paid, the payout method and the policy term.

• The base plan can be customised by adding riders/add-ons. This will help to meet the additional requirements and provide better financial security. Some of the popular choices are Waiver of Premium Rider, Accidental Death Benefit Rider, and Partial or Total Disability Income Rider. The choice of riders can vary according to the terms and conditions of the insurer. 

• Complete the documentation and the formalities. All the documents requested by the insurer must be submitted. This may include medical reports and other documents of identification. The company may take some time to verify all the documents submitted. Soon after verification, the premium needs to be paid and a term policy will be issued.

10 Points to Remember While Buying a Term Plan

Here are some things to remember that will help you ensure your purchase process completes smoothly.

• Do not provide any incorrect details to the insurer at the time of the purchase of the policy. This may lead to the rejection of a policy or claim later on.

• If any information is missed at the time of filing the basic details, inform the insurance company as soon as possible. This will assure the payout to your dependents in case of an unforeseen event.

• The general health of the client is crucial in estimating the sum assured and the cost of premiums.

• Terms and conditions may be added according to the results of the medical test.

• The application may also be rejected if the mortality risk is very high.

• Be careful in selecting a Term Insurance plan that can meet your needs. The basic plan can be optimised by adding riders. The plans can also be compared among different insurers with the help of a Term insurance calculator.

• Undergoing a medical examination may help you leverage higher coverage benefits at lower premiums.

• Buying a Term Plan at an early stage in life is recommended as the probability of developing an illness is lower and higher coverage can be added.

• A medical test is extremely helpful in the settlement of claims as it cannot be disputed by the insurer.

• A medical test for Term Plan can also help determine one’s physical health. Preventive measures can be taken to deal with any ailments that are identified in the medical tests.

Frequently Asked Question

Here are the answers to the most asked common questions regarding the medical tests for buying Term Plans.

Do I have to pay for the medical examination?

Usually the insurance company bears the cost of the medical examinations when you apply for a Term Plan.

Can I get my medical results?

Yes, you can get in touch with the insurance company to get the results of your medical examination.

Can I buy a term plan without a medical exam?

This depends on the terms and conditions of an insurer and the type of plan you choose. Some insurance companies may offer a Term Plan without a medical test. Thorough research must be done to compare the exclusions and inclusions.

Does the medical test take place before or after paying the premium?

The medical test usually takes place before paying the premium.

Are the medical test results confidential?

Yes, the medical tests performed before the purchase of a Term Plan are confidential.

Can the application be rejected based on medical tests?

Yes, different insurance companies have terms and conditions. Some insurers may reject a client’s application based on medical test reports.

How long will the results of the medical tests take?

The time taken for test reports depends on the type of tests performed.

Disclaimer: The content on this page is generic and shared only for informational and explanatory purposes. It is based on industry experience and several secondary sources on the internet, and is subject to changes.

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