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Why Is Medical Test Important In Term Insurance?

Why Is Medical Test Important In Term Insurance?

Medical test for Term Insurance

Buying a term insurance policy helps you protect your family against financial instability if something happens to you. You can opt for a significant amount of coverage (or Sum Assured) under a term plan by paying lesser premium than other life insurance plans. The availability of coverage and associated premium amount, however, depends upon various factors such as your age, annual income, and most importantly, your lifestyle and health status.

Insurance companies require applicants to take a complete body medical examination for term insurance before issuing a term insurance policy with a high sum assured. This is applicable for both traditional term insurance plans and term insurance for spouse cover. Here is why undergoing a medical test can be necessary while buying term insurance.

When is term insurance medical test mandatory?

Undergoing a medical test for term insurance coverage is mandatory, in either or both of the cases mentioned below –

  • Your age is above 35 years
  • You have chosen a sum assured of Rs 10 lakhs and above

There are some term insurance policies, which do not require you to undergo a medical examination for term insurance, up to the age of 40 or 45 years. Insurance companies may similarly provide relaxation for term insurance medical test requirements for applicants aging less than 45 years and for coverages up to Rs 20 or 25 lakhs.

However, if you have any pre-existing illness, family history of health or hereditary conditions, the insurers would require you to take a medical test for term insurance, irrespective of your age and opted sum assured. Overall, the requirement of term insurance medical tests is subject to the underwriting policies of the insurer. You should, therefore, go through the medical grid of the insurance company to determine the age and sum assured for which a term insurance medical test is mandatory.

What is the need for medical tests for purchasing term insurance?

Insurance companies assess your health status to determine whether you have any existing health condition or history of medical issues, which might later increase the probability of a claim. In case you have any health issues that may increase your chances of premature demise, the insurance company may increase the premium payable, put restrictions on the sum assured, or even reject your term insurance proposal, based on your medical test results.

On the other hand, if your health is normal, the insurance company may offer insurance coverage without additional terms and conditions. Term insurance plans require medical test reports to verify the information provided in the application. These reports help the insurance company estimate your risk profile before deciding the available coverage and the applicable premium.

Which tests are included in the medical examination for term insurance?

The applicability of medical tests at the time of purchasing term life insurance varies from one case to another – depending upon the declarations you have made in the insurance application. The routine medical examination comprises basis measurements of body weight, height, and body mass index (or BMI), along with the following –

ULIPs for planning your retirement

Subsequently, as the age of the applicant and the sum assured increases, the medical examination required may comprise additional tests such as the treadmill test, Electroencephalography (EEG), HIV I & II, hormonal and cholesterol assays. Further tests may be required in case you have a medical history of health ailments such as diabetes and hypertension, or if you have any addictions.

What are the benefits of having medical tests for term insurance done?

Undergoing medical tests before buying a term insurance plan comes with the following benefits –

1. No claim rejection

Term life insurance claims are usually rejected because of the discrepancies found in the personal information provided when buying the policy. When you undergo a medical test before purchasing a term life insurance policy, you are absolved of this potential rejection. The medical test reports serve as proof of your fitness and support any claim approval that might arise later.

2. Affordable premiums

Term insurance policies, which do not require a medical test, usually come with heftier premiums to cover the risk of the unknown. The primary purpose of the insurance company here is to determine the amount of premium payable based on risk perception and for the desired term plan coverage. If your health is normal, you will be eligible to lower rates of premium. In case you have any pre-existing health conditions, you may have to pay a higher amount of premium than a healthier individual.

3. Higher Sum Assured

Traditionally, term insurance plans that require you to undergo a medical examination offer higher assured and coverage to healthy individuals. The sum assured is the guaranteed term insurance benefit paid to your family in case of your unfortunate demise within the term plan coverage period.

At Canara HSBC OBC Life Insurance, our requirement for medical tests varies from case to case. If you are looking to opt for comprehensive term insurance coverage and wonder if you would need to undergo a medical examination, feel free to connect with our team of life insurance specialists and discuss your queries.

Speak to an insurance specialist now!

Frequently Asked Questions (FAQs) for Term Insurance Plans

A person can only purchase a term insurance plan till the age of 65 years, and they can choose the risk coverage for up to 99 years of age. One can easily buy the best online term plan between the age of 18 to 65 years.

This being a term insurance plan doesn't offer any payout after maturity or expiration date

Each insurance company has its own term insurance premium calculator. If you want to check out the premium quote, go for the iSelect Star term plan calculator. It gives a premium amount based on your age, gender, habits, education, and annual income.

You can purchase an iSelect Star term plan anytime between 18 to 65 years of age. This is a term plan with return of premium option – that means all the premiums paid throughout the tenure will be paid back to you if you outlive the policy.

It depends on your needs. For example, if you want to cover a child's education or wedding expenses, you have to include them in your coverage. Your premium will be calculated accordingly when you buy the best term plan in India.

If your key purpose is to give your Family financial protection, go for the best term insurance plan. And if you want some savings, in the end, go for a traditional life insurance plan. iSelect Star is a term plan with return of premium option. All the term insurance premium will be paid back to you, if you outlive the policy term.

Go for at least 12 times cover than your annual income. Or you can go as far as 20 times coverage as per your needs.

The right time is when you don't have anything to keep your Family safe from financial storms, and they rely on you for financial needs.

If you are unable to make the payment or suffering from a terminal illness, the best term insurance plan pays a part of the sum insured to treat your disease.

Term life insurance plan riders are attachment or endorsements made, while taking the term insurance policy, as a supplementary coverage to policyholders. Apart from the core death benefit, term insurance plan riders offer below-given additional benefits:

  • Accidental Death Rider When a person suffers from a terminal illness, his/her family ends up spending a significant amount in treatment and medical expenses. Accelerated death rider pays a part of the sum insured in advance to cover such costs and save the family from running out of cash.
  • Accidental Disability Rider If the policyholder can't pay the premium because of an accident or permanent disability, a sudden disability this pays the premium on behalf of the policyholder till completion of policy term or for a defined duration.
  • Critical Illness Rider If the insured person gets a heart attack, cancer, or any other critical illness, this rider pays a lump sum on valid diagnosis.
  • Premium Waiver Rider If the policyholder is unable to make payments due to income loss or disability, a premium waiver rider waives off all future premium payments. And the term insurance policy remains active until the expiration date.
  • Income Rider: This rider in a term insurance plan ensures that your family receives regular income + sum insured in case of unfortunate demise of life insured.

Anyone can go for life insurance as it offers some savings after the maturity date, but it doesn't cover the protection of your family . The best term insurance plan is solely designed for taking care of loved ones if something happens to you. Term insurance plans act as a shield between your family and sudden financial fall. They make sure that your family lives a healthy life even after you. With a little amount paid per year, you can be worry-free from the family's financial conditions.

Questions that you need to ask while Buying the Best Term Insurance Plan?

  1. 1. Are you buying a term plan with return of premium?
  2. 2. Amount of premium you have to pay based on your age, habits, education, and monthly income
  3. 3. The total number of benefits covered in the term insurance plan. Do they include benefits that you care about the most?
  4. 4. How to save money on tax if you pay for the term life insurance plan?
  5. 5. Do they offer regular income options?
  6. 6. Can you change the coverage and premium in the future?
  7. 7. Does the claim consider valid if death occurs outside India?
  8. 8. Which kind of death is not covered by a term insurance plan?
  9. 9. Can NRIs take a term insurance plan? If yes, what are the conditions?
  10. 10. Does the term insurance plan have a cash value if you decide to cancel the term insurance policy?
  11. 11. Under what circumstances can a term insurance plan be cancelled?
  12. 12. Can I pay the premiums online or make electronic payments?
  13. 13. What will happen to the term life insurance plan if the life assured starts smoking after purchasing the policy?
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