Why Should You Not Take A Term Plan Without Medical Test in India?
Close
Close

Buy a Life Insurance Plan in a few clicks

Now you can buy life insurance plan online.

Kotak e-Term Plan

Protect Your family’s financial future with Kotak e-Term Plan. Know more

Kotak Assured Savings Plan

A plan that offer guaranteed returns and financial protection for your family. Know more

Kotak Guaranteed Savings Plan

A plan that offers long term savings and insurance in one premium. Know more

Kotak e-Invest

Insurance and investment in one plan with Kotak e-Invest. Know more

Kotak Health Shield

Insurance against medical expenses related to heart, brain, liver and Cancer. Know more

Why Should You Not Take A Term Plan Without Medical Test in India?

Why Should You Not Take A Term Plan Without Medical Test in India?
  • 17th Dec 2018 |
  • 25,912

Term insurance is a necessity in today’s fast-paced world where we compete almost every day to stay relevant and ready for the next opportunity. Also, the uncertain nature of life is a factor to consider for getting a term insurance.

Healthcare services are becoming more and more expensive, and getting quality treatment is even more difficult. With all this in mind, if someday an unfortunate incident occurs, you should be in a position to still support your family in your absence. That is exactly where a term insurance comes into the picture. Term insurance plans provide death benefits that support your family financially even after you.

In this article, we will focus on why you should not buy a term insurance plan without medical test. Alongside, we will also understand term insurance benefits.

Term Insurance without Medical Test

To avail of a term insurance policy, you will generally have to give a medical test. A medical test gives your insurer a clear idea of your health quotient, and your premium will depend on how clean a chit you get from your medical practitioner. If you have a family history of certain diseases or if you are suffering from any ailment at the time of policy issuance, your premium amount will rise. You could additionally opt for multiple riders like critical illness riders, personal accident riders, permanent disability riders, and so on. These insurance riders will take care of the parameters that are not included in your original policy.

Almost every term insurance provider will ask you to take a medical test before issuing you a policy. However, some will still not ask you to take a medical test. This also depends on your age and the sum assured. Some providers offer term insurance without medical tests in India if the maximum sum assured does not exceed INR 1 crore. Such term insurance providers usually take your medical history over a call and issue your policy, especially if you are a healthy person. Considering the amount of cover you need and your age, some providers forgo the test. This can help you save expenses on medical tests.

Multiple aggregator websites allow you to compare many different policies online. You can segregate the list based on which of them offer you term insurance without medical tests. It is important to read all the fine prints properly before choosing any policy provider, especially if you are going for a provider offering term insurance without a medical test.

BUY TERM PLAN NOW




What is Whole Life Insurance?

A whole life insurance policy is also known as a permanent insurance policy. You will have to pay a higher premium as compared to the premium of a term insurance plan. The advantage here is that the premium amount is fixed. In addition, along with the death benefit, you also get income benefits, as the cash amount that is accumulated over time is exempted from taxes. This amount can be used at the discretion of the owner of the policy. You could use this amount for retirement planning or for paying the future premiums of your insurance. If you are in your late 30s or above 40, it is recommended that you go for whole life insurance, as you may have more responsibility towards your family, such as children’s education. You will need higher financial security. As the premium is quite high. Thus, it is important to think twice before choosing this insurance.

Buying a Term Insurance Plan without Medical Examination

Many insurance companies ask their potential customers to take a medical test before buying a term plan. A medical test will help the insurer decide the right premium for the coverage desired by the policy buyer based on your ailments or illnesses. Most insurers will ask you to take a medical test, but opting out of it might not be a choice given by every insurer.

If an insurer recommends you take a medical test before purchasing the policy, then the policy could have certain terms and conditions in case you decide to opt-out of the test. A lot of insurance companies might give a term plan without medical test if you are in your early 20s or 30s with zero lifestyle habits.

It is always advisable to check the terms and conditions carefully if you are going for term insurance without medical test.

Things to Consider When Purchasing a Term Plan without Taking a Medical Test

While purchasing a term life insurance plan without medical exam, make sure that you do not hide any health condition or a lifestyle habit from the insurer. This information remains confidential and will not be revealed to anyone.

The insurer can increase your premium due to your smoking habit or disease, but at least the death benefit claim will not be declined. The solution to higher premium rates is getting premium quotes from various companies and choosing the term plan from a reputed insurer offering affordable premiums.

Why Medical Test Is Important for Term Insurance?

Many insurance companies opt for a term insurance plan without medical test, before issuing you a policy, but is that the right approach? We recommend that you do not go for such policies. A medical test should be mandatory for everyone who is buying term insurance. The aim of term insurance is to provide your family with a financial blanket in case something unfortunate happens to you.

A medical test will reveal a few important ailments, deficiencies or other problems of which you might not be aware. It will also allow the insurer to include these factors before deciding on a premium for you. This will benefit your family in the long run as you will be covered for all of the factors. Disclose habits like smoking so that the insurer can take the right step while setting up your policy.

Let’s take a look at some reasons why the medical test is required for term insurance:

Premiums

The insurer’s main objective is to calculate the premium you must pay for your term plan. Based on how one perceives risk, the insurance industry operates. So, before determining how much of a premium you should pay, the insurance provider needs to be aware of your medical condition. Your insurance premium will be cheaper if you are physically healthy. However, the risk factor is bigger if you have pre-existing medical conditions, which will result in a higher premium.

Sum Assured

The sum assured is another feature of term insurance. The sum insured is the amount of money that is paid to your nominees in the event that an unexpected circumstance arises while the term plan is in effect. The medical examination required for term insurance enables the insurers to learn all there is to know about your health. If you are generally in good health, they may then be able to offer you a bigger sum assured. The lesser sum assured offered by term insurance without medical tests is typically insufficient to support your family financially.

Claim Rejection

If you believe that purchasing a term plan without a medical test will allow you to save money despite having an underlying condition, you are mistaken. If it is determined that the policyholder’s death was caused by a pre-existing ailment, the insurers would often deny the policy claim.

Read about other Reasons Why Term Insurance Claims Get Rejected

Low Coverage

A life insurance policy will inevitably offer less coverage if you purchase a term plan without a medical test. This is due to the fact that the insurer must make up for the risk associated with any medical conditions that you may have but have not yet disclosed to the firm.

You are aware by this point that a term plan without a medical exam will not be as beneficial to you as one that does. Although the procedure may seem a little tedious at first, it ultimately benefits you. Your objective is to leave your family with enough money to support their way of life after you. You can only succeed with that with the proper plan.

Disadvantages of opting out of a Medical Examination

Smaller Coverage Amount

If you opt for a term insurance plan without medical test, the chances are you will end up with a lesser cover. This might not be sufficient for your family’s well-being; in case something happens to you.

Higher Premium

If the insurer is not aware of your medical conditions/history, chances are they will charge you a higher premium to safeguard their risk. Your premium is decided on the risk perspective you come with while buying term insurance. If you do not disclose any medical history, you might have to pay a higher premium.

Possibility of Claim Rejection

If you do not disclose your medical history or lifestyle habits, and those ailments and habits cause an unfortunate event, the insurance company will straight away reject your family’s claim.

Term insurance policies have the sole objective of providing support to your family when you might not be around. If you compromise on giving even the smallest information related to your health, your family might not get a desired and deserving cover after your death. Therefore, a medical test should be mandatory while you are buying term insurance.

What Does a Medical Test for Term Insurance Consist of?

The nature of medical tests varies from case to case. It largely depends on the declarations made by the applicant and can consist of the following in addition to other tests depending on your lifestyle habits, current illnesses, and medical history.

  • Height and weight for determining the BMI (Body Mass Index).
  • A blood or urine test covering various profiles, like CBC (Complete Blood Count), glucose etc.

The medical history of the applicant and the family would be examined and evaluated to determine what needed to be covered. The tests may also check for HIV types I and II and lipid levels. If the person or a family member has a history of sickness, extra tests might be necessary. When taking these tests, it is crucial, to be honest about our drinking and smoking habits. People are also questioned about their travel history.

When is a term insurance medical test mandatory?

It’s critical to understand whether you must pass a medical exam in order to obtain a specific term plan. The following situations necessitate a medical exam in order to purchase a term insurance plan, despite the fact that some term insurance plans are available without one.

A medical test is normally mandatory in either or both cases.

  • If you are older than 35 years.
  • If you pick a sum assured of INR 10 lakhs or more.

There may be some term insurance plans without medical tests. However, pre-existing illnesses, family history, and hereditary conditions would require a medical test irrespective of the age or amount of sum assured.

Stages of insurance medical test

The majority of insurers might want you to take a life insurance medical exam. This enables the insurer to confirm the accuracy of the information regarding your present health and previous medical history. A licenced and certified practitioner does the medical examination.

The insurance medical test is often conducted at a diagnostic facility designated by the insurer. A qualified medical professional will collect samples, perform various tests, and ask you certain questions based on a questionnaire. Generally, the entire process is completed within half an hour. Here are three phases of medical checkups for insurance.

1. Verbal questions

The evaluating medical professional will provide you with a questionnaire. You must reply to these verbally according to the best of your knowledge with sheer accuracy.

During this stage, the medical practitioner will ask you certain questions. These may include questions about past hospitalizations, if there are any medicines you consume on a regular basis, history of any medical procedures you may have undergone, and any current medical issues and diseases.

The medical professional may also ask you questions about the medical history of your close family members. Additionally, you may need to provide details about your family doctor and the facility you often use in case of illness.

You will also have to give information about your habits, such as smoking, drinking, or drug abuse, if any. In case you suffer from anxiety, depression, or other mental issues, you must provide details about the same to the medical practitioner during this phase.

2. Standard sampling

In this phase, standard samples, such as blood and urine, may be collected for testing. The samples are checked for various diseases. The results of such tests are then cross-checked with the information provided during the verbal questionnaire stage.

3. Medical tests

Based on your age and the sum assured applied for; some additional medical tests may be conducted. The test results will be combined along with the other information collected to determine your eligibility for procuring life insurance coverage.

A full medical report includes fasting blood sugar levels, echocardiogram (ECG), blood pressure level, and complete blood count.

The primary objective of undergoing a medical checkup for term insurance is to determine your health quotient. Depending on the results of the medical examination, the insurer will offer you a customized plan that is suitable for your personal requirements. Moreover, when you are able to provide a medical fitness certificate, you may be able to reduce the premium cost, which results in significant savings over the years.

It is advised that you first undergo the necessary exams to ascertain your eligibility before choosing the finest life insurance policy.

What are the benefits of having medical tests for term insurance done?

In the event of your untimely demise, having a term insurance plan can help you provide your family with financial security. Your children’s future, loan repayment, and household bill management will all be taken care of while you are away, thanks to the term insurance benefit.

However, a thorough term insurance medical exam is required as part of the term insurance buying procedure. Your overall health status and risk profile will be determined by the insurance provider based on the results of the term plan medical tests.

The insurer will then provide personalised term insurance policy quotes for you so that you may select the term plan option that provides the greatest advantages for the least expensive premium rates.

Benefits of Term Insurance with Medical

Reduced possibility of claim rejection

Any discrepancies in personal details at the time of buying the policy and while making a claim can result in the claim getting rejected. Medical tests serve as documentary evidence of the details submitted earlier and can thus support your claim.

Reality check

The test reports give you insights into your medical conditions. This aids in taking preventive and remedial measures for leading a healthy life.

Reasonable premium rates

Having a healthy body is rewarded by lower premium rates. You can thus enjoy modest savings through lower premium fees.

Higher sum assured

Term insurance plans requiring medical check-ups normally offer a higher sum assured depending on the test results. This allows you to create a larger corpus for your family during unfortunate times.

How does your health affect your premium and coverage?

There exists a direct correlation between premiums and mortality risk. The higher the mortality risk, the higher the premium amount. Thus, your health conditions significantly affect the premium and coverage.

Having said that, a lower premium must not be the sole criteria for selecting a term plan. Besides, the premium amount and coverage vary for each insurer. So, you must also take into account the creditability of the insurance company.

FAQs

1. Can I buy term insurance without medical tests?

Yes, you can buy a term insurance plan without a medical test, but it comes with a set of repercussions discussed in this article.

2. What is a medical test in term insurance?

A medical test in a term insurance plan is conducted by the insurance company to gauge the health of the applicant. This test usually includes a blood test, urine test, ECG or EKG test, etc. In addition to this, the insurance company may also request some tests as per your unique health conditions.

3. Why is a medical test important for a term plan?

A medical test in a term plan allows the insurance provider to determine your risk. The more health issues a person has, the higher the chances of needing medical attention and filing claims. This increases the risk perception for the insurance company. On the other hand, a healthy applicant will likely make fewer claims, reducing the risk perception. A medical test allows insurance providers to understand the optimal amount of cover needed for each customer.

4. Does the insurance company staff conduct medical tests?

No, the insurance company staff does not conduct medical tests. The insurance company has a network of registered medical centres. You can visit any of these at your convenience.

5. Do all term plans require medical tests?

The policy term and conditions can differ from insurer to insurer. A thorough health check-up enables the insurer to take into account the risk of unknown associated medical conditions and offer you suitable coverage. But all term plans do not require a medical test. However, such plans usually charge higher premiums and offer lower coverage.

Kotak e-Term Plan

Download Brochure

Features

  • Nominal Cost
  • Multiple Plan Options
  • Flexible Payout Options
  • Critical Illness Rider
  • Tax Savings
  • Long term Coverage

Ref. No. KLI/22-23/E-BB/492

T&C

Browse our library of resources

- A Consumer Education Initiative series by Kotak Life

Similar Articles

Why Should You Buy Term Insurance in 2022?

8 Benefits of Term Insurance You Should Know

Do I Need to Give a Medical Test for Term Insurance in India?

How To Calculate The Amount Of Term Life Insurance You Need?

Is Life Insurance Investment Worthy Enough

Do Beneficiaries Pay Taxes on Term Insurance?

What are incremental term insurance plans?

How Much Term Life Insurance Cover Do I Need in India?

Why Spending Time with Friends is Essential for Your Mental Health?

Should You Have Multiple Term Life Insurance Policies?

Why 1 Cr Term Plan Is Necessary For Family?

What All Documents Required For Term Insurance In India?

How to Ensure That Your Term Insurance Claims Are Never Rejected?

Does Your Term Insurance Plan Cover Death Due to COVID-19?

Insurance Policy for Housewife In India

Individual Life Insurance vs. Group Term Life Insurance

Online vs Offline Term Insurance: Which Is The Better Option To Buy

Is Group Term Life Insurance Provided By Employer Sufficient?

Insuring yourself against Ill Health with a Critical Illness Rider

Planning For Children's Future

How To Choose the Right Term Insurance Plan?

Insuring Against Disability With Disability Insurance Rider

What Should Be The Duration Of Your Term Plan in India?

What is a Joint Term Insurance Plan? Key Benefits of Joint Term Plan

Everything About Claim Settlement Ratio for Term Insurance

Know How to Invest at Every Age for Larger Returns

4 Reasons Why You Need Critical Illness Cover

Why does every working woman need life insurance?

Should You Buy a Term Plan After 40?

Steps on How to Buy Term Insurance Online

Why is it important to buy term insurance plan?

Protection for your family

Can I Buy Term Insurance for a COVID-19 Patient?

What Is a Renewable Term Insurance Policy?

4 Methods to Calculate How Much Term Insurance You Need

Do You Need Term Insurance Cover After Retirement?

All you need to Know about Term Insurance Plans for Housewives

Different Types of Protection Plans

Term Insurance with Critical Illness

Is term Insurance Needed for People With No Dependents?

10 Ways to Get Your Kids Involved in Your Healthy Lifestyle

Term Insurance Calculator - Everythng You Need To Know

Key IRDAI Regulations That Changed Face Of Term Insurance Industry In 2020

Why should single women purchase term life insurance?

Endowment Plans vs Term Plans: Understanding the difference

Can Non-Resident Indians (NRIs) Buy Term Insurance In India?

Why Buying a Term Plan Is Smarter Than Traditional Life Insurance Products

Term Insurance: What Happens When You Don’t Pay Your Premiums?

All About Term Insurance Inbuilt Coverage

4 Things To Expect From Your Term Insurance Plan in India

What Happens if you Hide Facts in your Term Insurance?

Which Term Insurance to Choose: Lump Sum or Staggered Pay-out Plan?

Term Insurance Plans and Policies for Smokers

What are the Documents Required for Term Insurance Plan?

Importance of Term Insurance at Every Stage of Your Life

Cost of Term Insurance Likely to Increase Soon

Can You Increase Your Term Insurance Cover?

Side Effects of Covid-19 Booster Doses

Why Term Insurance Is Better Than ULIP?

Eligibility Criteria for Buying Term Insurance in India

Term Insurance With Riders In India

10-Year Term Life Insurance Policy - Explained in Detail

How to Compare Term Insurance Online

Are The Add-ons and Optional Features of Term Insurance Plans Actually Beneficial?

Is Term Life Insurance Plan an Investment or Expense?

Term Plans are Definitely Cheaper than You Think!

Should Youngsters, Working Couples Buy Term Insurance Plans?

Is ₹1 Crore Term Insurance Good Enough Cover?

Can I Make Changes to My Term Insurance Policy Post Purchase?

कोविड -19 बूस्टर खुराक के दुष्प्रभाव

Why Buy Term Insurance Even at Rising Rates?

What is Term Insurance - A Complete Guide

5 Term Insurance Benefits for Single Women

5 Things To Consider While Buying Term Insurance Plan

Why Term Plan Should Be The First Step To Securing Your Future?

Term Life Insurance Plan for Smokers vs Non-Smokers

Is it a Good Time to Buy Term Insurance During the COVID-19 Pandemic?

Increasing Term Insurance and Riders

Choosing Riders for Insurance Plans

Make Your Online Term Plan Your Family's Monthly Pay Cheque

How to Buy 1 Crore Life Insurance Policy Without Medical Test

What Are Insurance Riders and How to Choose Them in a Term Plan?

Understanding Term Insurance Riders

6 Reasons That Make Term Insurance a Must Buy

8 Types of Death not covered in Term Insurance Plan

5 Reasons to Buy Term Insurance When You are in Your 30s

How to Surrender Term Life Insurance When You Have No Liabilities?

Why Married People Should Buy Term Insurance Under MWP Act?

Ideal Features of a Suitable Term Plan - Act Now for a Stress-free Future

Planning For Son or Daughter's Wedding

Comparing Term Plans – What Should You Look Out For

Term Insurance: Most Common Term Insurance Myths Explained | Kotak Life

5 Benefits of Early Retirement Planning

What Should You opt for - Limited or Premium Pay?

10 Ways to Mentally Refresh After a Stressful Day

Why Buy Term Insurance Plan With a High Cover?

टर्म इंश्योरेंस क्या है? टर्म इंश्योरेंस का मतलब

What Is a Passive Income? Why Should You Use It to Buy a Term Plan?

8 Factors to consider before choosing a Critical Illness Insurance

Does Term Insurance Cover Accidental Death?

Best Investment Plans for Children - Secure Your Child's Future

What is Critical Illness Policy

Tax Benefits of Term Insurance in India

Term Insurance Basics You Should Know

Calculating Term Insurance Premium

What Are the Best Term Insurance Plans for Planning Retirement?

Different Types of Premium in Term Insurance

Can I Get Term Insurance on Behalf of My Spouse?

Can A Housewife Buy a Term Insurance Plan - All You Need to Know

Gift Your Father A Term Insurance Plan This Father's Day

Why Should New Parents Buy Term Life Insurance?

6 Types of Death not covered in Term Insurance Plan

Buying A Term Insurance Plan? Take These Factors into Account

Make Your Online Term Plan Your Familys Monthly Payout

Buying A Term Insurance? Don't Ignore the Claims Settlement Ratio

Advantages & Disadvantages of Term Insurance in India

What is a short term insurance policy?

Term Insurance – Why You Must Include In Your Financial Planning?

Why Should You Add a Rider to a Term Insurance Plan?

What is Insurance Premium - A Detailed Guide

Insuring Protection Against Death With Death Insurance Rider

Term Vs. Whole Life Insurance: Which One You Should Buy in India?

Why Term Insurance Is Important in times of COVID-19?

Term Plan with Spouse Cover

Busting Myths and Facts About Term Insurance Policies

What is Form 16, Form 16 part A, Form 16 part B, Information Required and FAQs

Why Surrendering Your Term Plan Policy In The Final Phase Maybe A Bad Idea?

How Not To Get Your Term Insurance Claim Rejected

Is a Term Insurance Policy Portable?

How Much Term Insurance Do I Need

8 Things To Do After Buying Term Insurance

When is the Right Time to Buy Term Life Insurance Policy for Yourself?

9 Ways to Help Family Members in Financial Trouble

What is the Right Term Period For Term Insurance Policy? Here's How You Should Choose!

Insuring Against Accidents with an Accidental Death Insurance Rider

Difference Between Term Insurance vs Life Insurance

How Does Term Life Insurance Work? Learn the Benefits

How to Identify Term Insurance According to Your Needs?

Why Premium Amount for Term Insurance is So Low?

Is There Any Tax Benefit on Term Insurance?

What Types of Deaths Are Covered in a Term Insurance Plan?

9 Most Frequently Asked Questions on Term Insurance

Is It Good To Buy A Term Insurance Plan In 2022?

Which Death Type Does Your Term Plan Not Cover?

How Much Cover Should I Take In A Term Plan?

Top 3 Reasons Why You Should Buy A Term Plan Now

What Happens to Term Insurance Plan With No Beneficiary - Kotak Life

While Buying Term Insurance Compare Features, Not Just Premiums

Reasons You Need Term Insurance Plan as a Self-Employed Person

Tips to Choose the Right Term Period for Term Insurance Plan

Advantages of Buying Term Insurance in Your 50s

How To Choose the Right Sum Assured Under a Term Plan?

Term Insurance Age Limit – Term Plan for All Age Groups

How To Change The Nominee in Term Insurance?

Term Insurance: Smokers vs Non-Smokers

Can I Extend the Tenure of My Term Insurance Plan?

Ensure Protection Against Death, Disease & Disability With Life Insurance

Can Term Insurance Plans Be Purchased As A Gift?

What Is the Correct Age to Buy Term Insurance?

How Does A Term Life Insurance Work in India?

Can Senior Citizens Avail Term Insurance?

Key Differences Between Term Insurance, ULIPs, And Health Insurance