While most of us understand the value of saving and investing, we often overlook one of the most important elements of financial planning: protection or insurance. The COVID-19 crisis has had unimaginable effects on our lives, demonstrating how unpredictable the world can be. What it also did was emphasize the importance of being prepared for anything life throws at us. Purchasing a term life insurance plan is one of the most effective strategies to protect your family and savings. If you are an NRI, it is even more important to research term insurance for NRI as you would need protection irrespective of where you are.
When purchasing term insurance for NRI, make sure to mark off a list of requirements. One of them involves a medical test. These are standard exams, and nothing to be concerned about. A medical test provides the insurer with a more complete view of the applicant’s health status and risk of developing illnesses, if any. This helps in the planning of the insurance policy, ensuring that the individual’s needs are completely addressed.
Why Are Medical Tests Needed?
When you apply for a term life insurance plan, the insurer must assess your health to determine how much risk they are assuming by insuring you. This helps them determine the appropriate premium for your plan. Medical tests provide reliable information about your health status and any possible risks you may bring to the company.
In addition to filling out the application form and presenting ID proof, you must also take various medical tests to enable the insurance company to make an informed judgment about your policy.
Importance of Medical Tests in Term Insurance
Medical tests are important in a term life insurance since they ensure you receive the appropriate coverage and premium. The following are some benefits associated with a medical test in a term life insurance plan:
Decision-making: Medical tests help insurance companies determine the premium for your policy. If you are in good health, the company will provide a lowered premium. However, if you have underlying health conditions or a history of illness, the company might require a higher premium.
Reduction in claim rejections: Medical tests are a certified way for you to present accurate medical information to your insurance company. It provides full disclosure of your medical history, allowing you to present an accurate image of your health. This reduces claim denials due to inaccurate data later.
Effect on the sum assured: The sum assured is the amount of coverage your term life insurance plan provides to your beneficiary in the event of an unfortunate incident during the policy period. The insurance company determines the sum assured based on your medical assessment. Medical exams in term insurance for NRI ensure that the sum assured is sufficient for your medical needs.
The importance of medical tests for critical illness coverage
- Critical illness insurance provides financial support for potential health concerns. Since you can never get insurance for an incident that has already occurred, insurers must ensure that you are clear of such health issues when purchasing the policy.
- Furthermore, some health problems and habits may increase your chances of acquiring one of the most serious diseases. For example, elevated cholesterol can cause diabetic complications, which can lead to hypertension, heart disease, and even cancer.
- The medical examinations assess your current health status and try to figure out whether you have any new health risks. Some of these health risks may go unnoticed in your daily life because the symptoms are minor.
Impact of Medical Tests on Critical Illness Coverage
The medical tests, combined with your medical history, occupation, and living situations, will predict your risk of developing a significant illness in the future. The outcomes of these tests will be as follows
Normal Risk: Proposed critical illness insurance is authorized at normal premium rates.
Increased risk of major illnesses such as heart disease and cancer (pre-diabetes, high cholesterol, etc.): The policy can be issued with a nominally higher premium.
Existing Medical Condition: If you have successfully treated a significant medical condition, the policy may cover the diagnosis and treatment that concluded more than 24 months ago or issue the insurance without including the specific ailment or won’t issue the policy if the illness is still prevalent and in its terminal stages.
Non-issuance is rare and occurs only when the insured is likely to die within the following 24 months as a result of an existing illness. In other circumstances, it makes more sense to have the coverage, even if the premium is slightly greater.
What are the medical tests for?
The applicant’s and his/her family’s medical histories would be reviewed and evaluated to determine what needs to be covered. The tests administered are typically subjective to the policyholder’s age. Common exams include height and weight measurements, blood testing, and urine tests. Blood tests include test results such as complete blood count, differential count, bio, fasting plasma glucose, and hemoglobin. Height and weight provide estimated BMI, whereas urine tests evaluate cotinine levels.
The tests may also include evaluating cholesterol levels as well as HIV I and II. Additional testing may be performed if the individual or family has a history of illness. When these tests are administered, we must be completely honest about our smoking and drinking habits.
Procedure for Medical Test for Term Insurance Coverage
Once the application form is submitted to the insurance provider, they will contact the applicant and request medical tests. They will coordinate with the applicant and make an appointment for him or her. A list of centres available in the individual’s area is provided, allowing them to choose the most convenient one. Many companies also provide the option of home testing. The insurance company covers the costs of these tests. The subject is also given any test-related instructions, such as fasting for 8 hours before the test, among other things.
So we are saying,
Purchasing term insurance or term insurance for NRI is the best approach to protect your family in the event of your sudden death. However, several things influence term plan premium prices. Family history is one of the most essential factors. Your family’s medical history can have an impact on your overall health. As a result, if your family’s medical history has an impact on your health and raises your risk of death, your term insurance premium will rise. It is because insurers can afford to take on the additional risk and enter into an arrangement to pay the death benefit to your family. So, being open about your family history may have an impact on your premium rates. However, it will provide optimum safety for your family!