Term life insurance provides chosen coverage for a certain period in exchange for premium payments. Once the period lapses, as the insured, you will get back the premiums paid. When the policy matures, you can give up the coverage, renew it or buy a new policy with different terms and conditions.
Under term plans, if the insured passes away before the expiry of the term, the beneficiaries can receive death benefits.
Significance of Medical Tests for Term Plans
Medical tests are mandatory when you buy term insurance primarily because they help the insurance company determine the coverage you need. The insurer uses a term plan calculator to determine the premiums for the coverage. Hence, medical tests are needed for term plans for the following reasons:
- Determining the premium amount
- Minimizing disputes during claims
- Making decisions for policy approval
- Calculating the sum assured for the policy.
Types of Medical Tests for Term Plan Approval
Generally, the type of medical test needed for term life insurance is based on the required coverage and policy term. Some of the standard tests are:
| 1. BMI Test | Body Mass Index (BMI) is an indication of the overall health of a person. It is calculated based on your height and weight. It is usually a benchmark for other tests. |
| 2. Urine Test | A urine test reveals more information about the health of the person. Blood glucose levels, keratine levels, etc., are evaluated from the urine analysis. |
| 3. Complete Blood Count (CBC) | This is a test that analyses blood cell counts. The blood work shows hidden medical ailments. It is a common medical test and is useful in evaluating the overall health of the person. |
| 4. Blood Sugar | Diabetes is a significant health problem that can cause several other ailments. Insurers will want to know whether a person has diabetes because it is often a pre-existing medical condition. |
| 5. Kidney Function Test | The functionality of a person’s kidneys is tested in the kidney function test. This medical test is essential to uncover underlying medical issues. |
| 6. Liver Function Test | Your insurance provider will want to ensure that you have a healthy liver. If there is some problem with the liver, it can lead to health issues in the future. |
| 7. Lipid Profile | This test analyses blood cholesterol levels and gives insight into several hidden health issues. This information is crucial to determine your heart health. |
| 8. Chest X-Ray | A chest X-ray helps assess health risks associated with blood vessels, the heart, and the lungs. |
| 9. HIV Test | Having HIV/AIDS can affect a person’s health. The insurance provider will need you to take this test to find out if you are affected. |
| 10. Echocardiography | A 3D and stress echocardiography is a standard test to measure the heart’s functionality. It is also one of the crucial tests to determine a person’s health risks. |
Depending on your insurance policy and your provider’s requirements, you may have to take additional tests. Not all tests will be required for those looking to enjoy term insurance benefits.
You will have to complete all the necessary medical tests before your insurance is approved. These medical tests reveal the risk for the insurance provider. Generally, if the tests show no underlying health risks, you may be able to secure a lower premium rate. This is why financial advisors suggest buying insurance at a young age. Some insurance providers may want you to take additional tests when you extend coverage or buy riders.
How to Take Medical Tests for Term Insurance?
When you have chosen an insurance provider, you can ask them about the list of medical centers where you can get these tests done. You must also get detailed instructions on preparing for these medical tests. Some tests require you to fast for a certain number of hours while others also have specific requirements.
Many insurance providers now also provide telemedical tests to make buying insurance easy for everyone. Your insurance provider may cover the costs of these medical tests.
Conclusion
One of the basic requirements for getting affordable insurance is good health. The insurer won’t take your word for how you are feeling. Medical tests are essential to determine a person’s health when purchasing insurance. Generally, low-health-risk individuals can enjoy lower premium payments.
The premiums may be significantly higher if you have certain pre-existing health conditions. Sometimes, you may not get specific coverage due to your medical condition. Hence, it is advisable to talk to your insurance provider and understand your requirements before buying term insurance.
