Why Medical Tests Might be Required When You Buy Term Insurance. As life is uncertain, and you do not know what is ahead in destiny, securing your family’s financial future should be your topmost priority. Investing in a term insurance policy will be an ideal option to do this. If you are eager to know what is term insurance and how it can ensure your family’s economic safety, read on.
A term plan is a type of life insurance policy that provides life cover to the policyholder for a specific tenure. The primary reason to invest in a term plan is that it acts as an income replacement tool for your loved ones and takes care of all their financial needs if an unfortunate event during the policy period results in your absence.A term plan offers a high sum assured as compared to other life insurance products. Moreover, it comes at a nominal premium. You can use a term insurance plan calculator to ascertain the cost you need to pay for your desired sum assured.
You need to consider various factors while buying a term insurance policy. Some of these include the sum assured, tenure, premium, and medical tests.Out of the aspects, you need to give utmost importance to medical checkups. These tests can affect your policy’s premium to a great extent. Let us learn why medical tests are necessary when you buy term insurance.
Importance of doing medical tests
Medical checkups are essential while investing in term insurance because they:
- Result in a lesser probability of claim rejection
The chance of the insurer denying the claim is quite high if the insured does not opt for medical examination. The insurer can dismiss the claim if the policyholder dies due to any pre-existing medical conditions, which they did not know about. Additionally, if the policyholder passes away due to medical conditions that occurred because of smoking or alcoholism, the insurer has the right to reject the claim. When the policy’s nominee files a death claim, the insurer verifies the cause of the demise. If the insurer finds out that the policyholder’s death doesnot match the terms and conditions of the plan, they can disapprove of the claim. Therefore, you need to undergo a medical examination and inform the insurer about your lifestyle habits. It will help you ensure that your family’s economic security is not in danger.
- Make it easier for the insurer to fix the premium
The insurer may charges a high premium for your term plan if you do not opt for medical tests while investing in it. The insurer is unsure about your medical conditions, lifestyle habits, and history of any critical illness. However, if you undergo a medical checkup, the insurer has a better understanding of your health. Therefore, it becomes easier for them to ascertain whether you have or are prone to acquire any life-threatening diseases. If you are healthy according to the tests’ reports, the insurer will charge you a reasonable premium.
Is it a good idea to skip a medical examination?
Many people consider skipping the medical examination while buying a term plan, but it is not a wise option. If your insurer gives you the choice of doing medical checkups, do not be persuaded. You may find it convenient now to buy a term plan without medical tests. However, think about the financial hardships that your family will have to bear if the insurer rejects your nominee’s claim. So, you should not miss out on any medical tests.
Now when you know what term insurance is, it is time to invest in an ideal plan that suits your family’s financial needs. As there are a plethora of options available in the market, it can be a daunting task to select an appropriate policy. Therefore, it is recommended to use a term insurance plan calculator, as it helps you to compare the premiums of various policies. So, without any delay, invest in a suitable policy and undergo medical tests, as suggested by your insurer.