While most of us are aware of the importance of saving and investing, we often ignore one of the most important parts of financial planning – protection. The recent COVID-19 crisis has affected our lives in unimaginable ways, bringing forth to light just how unpredictable the world can be and further reinforcing how important it is to be prepared for whatever life throws at us. One of the best ways to remain financially protected is to buy a term insurance plan.

While buying a term insurance plan, one must make sure to tick off a checklist of requirements. One of them is that of a medical test. These are routine checkups and nothing that one should be worried about. Getting a medical test done helps the insurer get a larger picture of the applicant’s health condition and chances of developing illnesses. This helps during designing the insurance policy so that the individual's needs can be met perfectly.

What Are the Medical Tests Required for Term Insurance?

Body Mass Index (BMI)

The BMI is used to assess the body mass of an individual. This evaluates your physical condition by comparing your weight to your height.

Urine Test

A urine test or urinalysis involves a medical examination in which a sample of your urine is analysed by a doctor. This test helps assess your overall health and identify specific conditions like diabetes and kidney ailments.

Blood Test

Routine blood tests are a common and effective way to assess your health. They involve analysing a blood sample to measure factors like glucose levels. This single test can reveal conditions like diabetes, thyroid problems and more, providing valuable insights for insurance decisions and overall well-being.

Complete Blood Count

The CBC test is a blood test that provides insights into your overall health and can detect various conditions such as anaemia, infections and leukaemia. It counts your overall blood cell count and offers a comprehensive view of your blood's composition.

Blood Sugar

A blood sugar test is mainly done to determine if someone has diabetes. The test measures the amount of sugar or glucose in your bloodstream and is performed like a standard blood test. A blood sugar test is one of the most common medical tests used by insurers to acquire crucial information about your health and potential risks.

Kidney Function

The kidney function test evaluates kidney performance. It detects potential kidney-related health problems. The test may use your blood or urine samples.

Liver Function

The liver function test is used to identify potential liver infections by analysing enzyme levels and the blood's protein content. It is used for detecting alcohol-related liver problems, hepatitis and other health issues.

Lipid Profile

A lipid profile is a type of blood test that is used to detect the risk of cardiovascular disease. The test measures different types of lipids in the blood and helps spot abnormal cholesterol content in your body.

Human Immunodeficiency Virus (HIV) Test

The HIV test confirms the presence of HIV in your bloodstream and assesses whether you have Acquired Immune Deficiency Syndrome (AIDS). Not all insurance companies require you to take this test, but some providers may request this test to determine whether you are HIV positive.

Chest X-Ray

A chest X-ray uses a radiation beam to detect problems in your heart, lungs and bones. Insurance companies use this test to get your comprehensive healthcare evaluation before issuing a policy.

Ultrasonography

Ultrasonography is used to determine the condition of major organs and can provide valuable information about potential tumours, but it may not be the primary tool for diagnosing cancer.

Comprehensive Trail-Making Test

The comprehensive trail-making test is a neuropsychological test that uses five visual search and sequencing tasks to diagnose a brain injury.

Treadmill Test

The treadmill test detects abnormal heart rhythms and the heart's response to cardiovascular exercise. It is typically used to identify coronary artery disease.

Why Are Medical Tests Needed

When you apply for insurance, the insurer needs to understand your health to decide how much risk they are taking by insuring you. This helps them decide the right premium for your plan. Medical tests provide accurate information about your health conditions and any potential risks you might pose for the company.

Alongside filling out the application form and providing ID proof, you must also undertake some medical tests to help the insurance company make an informed decision about your policy.

Benefits of Medical Tests in Term Insurance

Medical tests play a critical role in term insurance plans by ensuring you get the right coverage and premium. Below are some benefits of a medical test in term insurance:

Decision making

Medical tests help insurance companies decide the premium for your plan. If you are healthy, the company will offer a lower premium. On the other hand, if you have underlying health issues or a history of illnesses, the company may charge a higher premium.

Reduction in claim rejection

Medical tests are a certified medium for you to provide accurate medical information to the insurance company. This ensures complete disclosure of your medical history, ensuring you present an honest picture of your health. This lowers claim rejections due to inaccurate information later.

Effect on the sum assured

The sum assured is the amount of coverage your policy offers to your beneficiary in the case of an unfortunate incident during the policy term. The insurance company decides the sum assured as per your medical tests. Medical tests in term insurance ensure the sum assured is adequate for your medical situation.

Low-cost premiums

Medical tests for term insurance enable insurers to accurately assess health risks, directly influencing premium rates. Healthier individuals typically receive lower premiums due to reduced risk. A comprehensive medical check-up for term insurance, including tests like BMI, blood test and lifestyle assessments, supports in evaluation and result in cost-effective coverage.

Better Policy Customisation

Completion of a medical test for term insurance enables insurers to align the policy to the applicant's specific health profile. This allows for more accurate coverage, addressing individual health conditions and life stages. The medical test results can facilitate the inclusion of relevant add-on benefits, at optimal rates. This enhances policy flexibility, allowing customisation for comprehensive protection.

Key Factors influenced by Term Insurance Medical Tests

Medical test for term insurance plan offers critical data that influences key components of the policy. These tests help insurers tailor coverage by considering specific health risks. Ultimately, the test results help determine factors like premiums, claim settlement, add-on benefits and the sum assured to ensure a more accurate and personalised policy.

Claim Settlement

Medical tests contribute to a smoother claim settlement process. This is because they provide insurers with a detailed understanding of an applicant's health. The upfront information helps minimise delays and claim rejections. Transparent health disclosures through medical tests lead to quicker and more efficient claim approvals, ensuring that the policyholder’s beneficiaries are protected.

Sum Assured

The results from a medical check-up can influence the sum assured amount available. Healthier applicants may qualify for a higher sum assured, offering more comprehensive financial coverage. This benefit helps ensure that individuals receive a financial safety net proportional to their health status.

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What do the medical tests cover?

The applicant and his/her family’s medical history would be looked at and assessed to see what has to be covered. The tests conducted are usually subjective to the policyholder's age. The common tests done would be height and weight measurement, blood test and urine test. Blood tests would compromise test profiles such as complete blood count, differential count, bio, fasting plasma glucose and haemoglobin. Height and weight help to determine the BMI and urine tests give a measure of cotinine levels.

The tests can also involve measuring cholesterol levels as well as HIV I and II. There might be additional tests required if the individual or a family has a history of illnesses. It is essential to be truthful about our smoking and drinking habits when these tests are performed. ICICI Prudential Term Insurance policy covers death due to COVID-19* and so, individuals are also asked questions related to their travel history if there are any symptoms that might indicate COVID-19.

Procedure for Medical Test for Term Insurance Cover

Once the application form is submitted to the insurance company, they make a request to the applicant for medical tests. They will coordinate with the applicant and schedule an appointment for him/her. The list of centres available in the individual’s locality is provided, for them to select the convenient one. Many companies also offer the facility of home testing. The insurance company bears the cost of these tests. The individual is also given instructions, if any, regarding tests such as fasting 8 hours before the test, etc.

We hope this article has helped you understand how beneficial it is to have medical tests done while taking term insurance plans.

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