Medical Test for Term Insurance

Table of Content

1. Is a Medical Test Mandatory for Term Insurance?

2. Which medical tests are required for term insurance?

3. Benefits of Term Insurance Medical Test

4. Why is it beneficial to have a medical test for your term plan?

5. Procedure for medical test for term insurance cover

6. Legal and Ethical Considerations of Medical Testing

7. Understanding Risk Perception

8. Factors Affected by Term Insurance Medical Test

9. What Is a Video or Tele Medical Check-Up for Term Insurance?

10. Frequently Asked Questions (FAQs) on Medical Tests for Term Insurance

Term life insurance plans without any medical tests often tend to provide lower coverage because unknown health risks remain unexamined. Medical tests check overall fitness and health, which is crucial in deciding the right premium and policy terms. 

Choosing a life insurance plan with medical tests ensures better coverage and aligns the policy with your actual health profile.

Claim rejection

Even the best term insurance plan in India may turn down death, critical illness, or terminal disease claims on certain grounds. These insurance policies are issued based on age, lifestyle, health and medical conditions, income and occupation of the policyholder. 

  In most cases of rejected claims, the same happens due to discrepancies in the medical history of the policyholder. 

This makes it critically important to have all the medical tests properly done before buying the policy. The risk of a rejection claim is far less in the case of healthy individuals.

More premium 

Term insurance premium amounts are decided based on a set of factors like age, gender, lifestyle, tobacco and alcohol consumption, medical history, occupation, etc. Premiums can be higher for older policyholders. It can also be higher if his occupation, lifestyle, habits and medical history suggest a higher probability of future ailments. 

Thus, for a chosen sum assured, a policyholder will have to pay a higher premium if the said parameters indicate possible health conditions in the coming times. A thorough medical test and precautions thereafter can minimise the risk of paying bigger premiums for your policy.     

Low coverage

If your medical record suggests you can be prone to diseases and health conditions due to your age, heredity, lifestyle, habits or occupational practices, it can lead to low coverage by insurance plans. 

In such cases, policies usually offer lower sum assured, since the risk of paying death benefits is higher. A proper medical check-up helps identify these risks in advance.

Customised coverage

Medical reports help assess an applicant’s health condition. In case you are healthy, you benefit from higher cover at a lower premium. However, if the reports show any underlying medical issues, add-ons or riders* may be suggested to protect those specific medical conditions.

Is a Medical Test Mandatory for Term Insurance?

 Yes,Medical tests are mandatory as per underwriting guidelines. Think of medical tests as a way to understand your health before deciding on the coverage you can get.

If you’re young (under 18–40) and applying for a lower sum assured, you may not need one, unless you have pre-existing health conditions or lifestyle risks like smoking. However, for higher coverage (₹50 lakh or more) or if you’re over 40, medical tests are almost always required. 

The results directly affect your premium, eligibility, policy benefits and even the riders you can add.

Which medical tests are required for term insurance?

Here's a lists some of the medical tests for term insurance, designed to provide a clear understanding of the applicant’s health condition:

1. Medical Examination Report – BP reading, BMI, Medical question and habits, 

2. Blood Test 

3. Urine Test 

4. ECG 

5. CTMT 

6. Special tests  

These are mandatory tests to be taken as per the insurer’s requirements

Blood Test

Accurate information about the applicant’s overall health is derived from this medical test. This test gives insight into conditions like diabetes, hypertension and risk factors for cardiovascular diseases. 

Echocardiography

Echocardiography, often called an echo test, is a simple, non-invasive ultrasound of the heart. It shows how well your heart pumps blood and checks the health of its valves and structure. 

This test may be recommended for older applicants or when initial reports suggest possible heart concerns, as it helps evaluate cardiac risk before finalising coverage.

Urine Test

Diabetes or kidney ailments can lead to critical health issues in the future. Your urine sample is examined to detect these issues via a Urine test.

Cardiac Treadmill  Test (CTMT)

The treadmill test is a stress test that assesses the heart’s function. It evaluates the heart rate, blood pressure and Electrocardiogram (ECG) changes while you walk or run on the treadmill. It is basically used to detect coronary artery disease.

 Special tests

You may be required to undergo additional tests if requested by the insurance company. 

Benefits of Term Insurance Medical Test

Medical tests for term insurance are important for risk evaluation. They play a crucial role in determining term insurance benefits, ensuring accurate premium calculation and comprehensive coverage. The benefits are:

• Making a Decision

A medical test for term insurance enables the company to decide the coverage amount and premium. A healthy client is eligible for a higher coverage at a lower premium. For example, with good health, you could qualify for a 2 crore term insurance plan at competitive premiums, ensuring stronger protection. In contrast, an applicant with underlying conditions needs to pay a higher premium, and coverage is limited.

• Fewer Claim Rejections

With a term insurance health check up, the applicant gives accurate information about his/her medical history. This avoids claim rejection due to non-disclosure of information at a later date.

• Impact on the Sum Assured

Medical tests impact the sum assured i.e., the amount the nominee receives if anything untoward happens to you. If the reports suggest that you are healthy, you qualify for a higher sum assured at a lower premium. On the contrary, if the report shows any existing health issues, the sum assured is considerably lowered. Still, the insurance company ensures adequate coverage for your existing health condition. For individuals seeking substantial protection, such as a 1 crore term insurance policy, completing medical tests is especially important to secure the highest possible coverage at the most affordable premium.

Why is it beneficial to have a medical test for your term plan?

The key advantages of medical tests for term insurance include:

• Prevent Claim Rejection

Medical tests are a means to evaluate your overall health condition. Any existing disease or illness is detected with these tests, and the cover is provided accordingly. With the help of medical tests, objections in the claim process can be avoided, as there is less scope for undisclosed personal health information.

Industry data highlights their significance. Greater clarity about the health condition of policyholders helps ensure smoother claim settlements.  HDFC Life stands with an individual claim settlement ratio of 99.68^##%, endowing strong assurance that genuine claims are honoured smoothly.

• Evaluate the Client's Risk of Death

Risk evaluation examines if any pre-existing medical issues could shorten the life of the applicant. This assessment is based on the outcomes of the medical tests taken for a term insurance policy. It helps in offering suitable coverage with fair terms. 

• Low-Cost Premiums

A medical test for a term insurance policy endows a clear picture of your health, which directly impacts the premium. If you are healthy and fit, then the chances of frequent hospitalisation are low, along with affordable premiums rates. 

But if health issues are detected, the premium may increase to cover the higher risk of future claims, making the policy more expensive.

• Changes in Coverage

At times, medical evaluations can reveal changes in your health, which may lead to adjustments in your coverage. If your health improves, you could qualify for lower premiums or higher coverage, giving you stronger financial protection.

• Better Policy Customisation

Health assessments provide a detailed analysis of your health. This makes it easier to avail riders and add-ons that match your requirements. Whether it is a critical illness insurance or additional benefits, a customised policy offers appropriate and wholesome protection.

• ^****Quicker Claim Process

Any undisclosed medical record may result in claim rejections or unnecessary delays. By undergoing medical tests before purchasing a term insurance plan, you provide a clear picture of your health, which helps prevent such issues and ensures smoother claim processing.

Procedure for medical test for term insurance cover

After applying for a term insurance policy, applicants are asked to undergo a list of medical tests. The process is coordinated on their behalf; appointments are scheduled, and options such as nearby health centres or even home test facilities are shared.

Applicants can choose what’s convenient for them. The cost of medical tests is covered if done within India. However, if the tests are conducted outside India, the expenses need to be borne by the applicant or the sales channel. 

Legal and Ethical Considerations of Medical Testing

While conducting a medical test for term insurance, the insurance company must consider several legal and ethical aspects. This is to protect the interests of the prospective policyholder.

Legal aspects before a term insurance medical test involve the following:

• Adhering to healthcare regulations while conducting the tests.

• Ensuring that the tests are appropriate and necessary.

• Obtaining the applicant’s informed consent.

Ethical considerations are as important as legal obligations in medical testing. They include:

• Maintaining utmost secrecy of the test results obtained.

• Making the information available to only authorised personnel.

• Avoiding discrimination against test results, i.e., rejecting claims unjustly based on the results.

• Respecting the applicant’s right to know their test results and how those results are being used.

• Using the test results fairly for risk assessment.

Understanding Risk Perception

The following are some ways risk is assessed during medical tests for purchasing a term insurance policy:

1. Maximize Coverage with a Medical Test

Undergoing a medical test ensures that your health is clearly assessed, which can help you qualify for higher coverage in your policy. Here’s how it helps:

• Accurate Risk Assessment: Medical tests capture accurate details regarding pre-existing conditions, i.e., blood pressure, cholesterol and lifestyle diseases such as diabetes. This transparency ensures that the coverage you get matches your current health status, resulting in fair premiums and fewer chances of disputes in the course of claims.

• Higher Sum Assured: Compared to plans that don’t require a medical test, policies with medical records are more likely to offer a higher sum assured, since the risk is clearly assessed.

• Benefits: Medical test-based insurance policies tend to have fewer exclusions and limitations, which gives your family complete protection.

• Longer Policy Tenure: You can have more financial stability for a longer time period with a confirmed medical profile.

2. No Medical Exam? Expect Lower Coverage

Some term insurance policies are available without any medical examination this really depends on the insurer, though generally insurers conduct medical test. No medicals results in a hassle-free and quicker purchase of plans. However, it comes with significant disadvantages, especially related to coverage. Here's all you should know.

• Limited Sum Assured: Without thorough health info, the maximum sum assured is often capped to lower risk. A no-medical-test insurance may not be adequate if you require higher cover.

• Higher Premiums: Premiums generally are higher to balance out the unknown risk of potential health issues when no medical screening is performed.

• More Stringent Policy Terms: Medical exam-free policies frequently have unstated provisions, such as exclusions for pre-existing conditions, which lessen their thorough efficacy.

• Shorter Coverage Period: As compared to medically underwritten policies, such plans could have a shorter policy term.

3. Why Skipping Medical Tests Isn’t Ideal

It may sound better to skip medical tests while purchasing a term insurance policy. Nonetheless, in most cases, it might not be an ideal thing to do due to the following aspects:

• Potential Claim Rejection: If you buy a policy without a medical test and later develop a serious illness, your claim could be disputed or even rejected because the condition existed before the policy was issued.

• Reduced Payout for Your Family: Because of policy exclusions or undisclosed medical conditions, your dependents may receive a lower payout than expected.

• Missed Opportunities for Better Coverage: Skipping the medical test can limit your coverage options. A simple health check, on the other hand, could qualify you for better policy terms and benefits.

• Absence of Customised Premium Rates: Without medical examinations, broad assumptions are made, often leading to very high premiums that don’t truly reflect your actual health condition.

4. Good Health Leads to Lower Premiums

A significant benefit of going through a medical test is the potential to get lower premiums, particularly if you maintain a healthy lifestyle. Read on to know how good health can assist you in getting lower premiums:

• People in Better Health Pay Less: If medical test results show excellent health with zero major issues, premiums are usually lower.

• Rewards for Healthy Habits: Maintaining a healthy BMI, balanced cholesterol, and staying smoke-free can lead to discounts, wellness benefits, or reduced premium rates.

• Transparency Promotes Trust: Sharing accurate health details through medical tests builds clarity and makes the claim process smoother in the future.

• Long-Term Savings: Term insurance becomes more inexpensive over time as premiums are reduced over a longer time period, which results in significant cost savings.

Factors Affected by Term Insurance Medical Test

The term insurance medical test is a certified way of assessing an applicant’s health to provide customised coverage. The factors affected by the test are:

• Amount to Be Paid

The outcome of your medical test is the key factor in deciding your premium. If the report shows you are in good health, you can enjoy higher coverage at a lower premium. 

On the other hand, if any health issues are detected, covering you becomes riskier, and you may need to pay a higher premium for the same protection.

• Death Benefit 

Death Benefit is the sum assured that will be paid to the nominee in case the policyholder dies during the insurance period. This, again, depends on the results of the medical test. If your test results indicate you are healthy, you can get higher coverage. 

However, if the readings in the report indicate any risk of developing health issues, the sum assured can be relatively low. It is recommended that thorough research be done to get suitable coverage. 

Also, you can use an online term insurance calculator to check the premium for the desired sum assured.

• Claim Rejection

Term insurance plans that do not require a medical test are also available. But the belief that they offer the desired coverage at an affordable premium is often misleading. These plans rely entirely on your declaration of existing health conditions.  

What Is a Video or Tele Medical Check-Up for Term Insurance?

A video or tele medical check-up is the process through a recorded video call or a structured telephonic interview. You’ll be asked questions about your personal health, lifestyle, and family medical history; no lab tests are involved.

Frequently Asked Questions (FAQs) on Medical Tests for Term Insurance

What medical tests are done for term insurance?

The medical tests for term insurance are Blood Test, Urine Test, CTMT, ECG Special tests if required. 

What happens if a medical test fails in term insurance?

If the routine tests fail in term insurance, the sum assured may be restricted, the premium may be higher, or the coverage may be cancelled or postpone for 6 month or sum assured can be reduced. It depends on the likelihood of insurance claims. 

Is the medical test mandatory?

Not all term insurance plans insist on medical tests. However, if you choose a plan without one, it is important to disclose any pre-existing health conditions. Hiding them may lead to claim rejection if the death is linked to an undisclosed condition.

Is it necessary to submit medical history when applying for term insurance?

Yes. Submitting an accurate medical record is important when applying for term insurance. Doing so assists in determining eligibility, premium and cover. Any undisclosed info may lead to claim delays or even rejection later on.

Related Articles

• Benefits of Term Insurance
• Features of Term Insurance Plan
• A Comprehensive Guide for Term Insurance Riders
• How much term insurance do I need 

References

1. https://www.investopedia.com/terms/m/medical-underwriting.asp

2. https://www.forbesindia.com/article/brand-connect/what-medical-tests-are-required-for-term-insurance/64491/1