What Medical Test are Required to Buy Term Insurance?

Written by : Knowledge Centre Team

2023-01-31

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Medical test plays a crucial role when buying a term insurance plan. Your medical history helps in evaluating the premium amount. Tests will assist in knowing the current health condition of the policyholder and life assured. Various factors impact the premium of a term insurance plan, and the medical test is one such factor.

Insurers can ascertain the sum assured to a policyholder and the premium based on the analysis of their medical condition, including any pre-existing diseases.

A medical test helps assess the risk perception of the applicant. A healthier individual will have a lower risk of being diagnosed with life-threatening diseases. Therefore, the premium of the term plan will be low for healthy people.

Let us understand the entire picture revolving around the medical test for buying a term insurance plan.

Why are Medical Tests Important while Buying a Term Plan?

There are several benefits of going through a medical test while buying a term life insurance plan, and listed below are a few of them:

Correct Sum Assured

A life insurer can easily decide on the Sum Assured that would fit the applicant by assessing their current health condition. With no pre-existing disease, the applicant is more likely to get a higher Sum Assured at an affordable premium rate. The Sum Assured may get lower if you have certain illnesses that will impact your survival in the future.
Lowers the Risk of Claim Rejection

If the policyholder passes away due to an existing illness and this condition wasn't declared by them while buying the term plan, insurers might reject the claim made by the beneficiaries. It is better to have your medical test done to be on the safer side. Surely, you wouldn't want your family to face hardships when you aren't around.
Right Premium Amount

A medical test gives an overall risk perception of the applicant. It allows the insurer to gauge the risk involved and decide the premium the applicant has to pay. If the applicant is very healthy, the premium amount of the term plan would be low.

Which Medical Tests are Required to Buy a Term Insurance Plan?

The number and type of medical tests will depend on the applicant's age and the coverage required, among other factors. However, it also depends on the insurer. The requirement may vary from one insurer to the other.

Listed below are a few medical tests that are generally conducted to assess a term insurance policy application:

Type of Medical Test	Detail
Body Mass Index (BMI)	It is a basic test to determine whether the applicant is healthy or not. The height and weight of the applicant are taken into consideration.
Lipid Profile	This test is carried out to diagnose cholesterol or any similar disease.
Urine Test	In urinalysis, a series of tests will be conducted to evaluate different conditions of the applicant's body.
Blood Sugar	This test will determine the sugar or glucose level in your blood. Diabetes is diagnosed using this test. The applicant may have to go through a fasting blood sugar test for it.
Complete Blood Count (CBC)	The total number of blood cells is counted in a CBC test. If the applicant is on some medication, it can be detected in this test.
Ultrasonography	This test is conducted to determine cancer. The condition of the vital organs can be known in this test.
Kidney Function Test	It determines the functioning of the kidneys. A weak kidney is a sign that the applicant may contract serious issues in the future.
Liver Function Test	The test measure the enzyme level and protein content in the blood. Health conditions like Hepatitis can be determined using this test.
Echocardiography	The functioning of the heart is assessed using images of the heart. ECG, stress echocardiography, and 3D echocardiography are some of the tests, which may be done.
Chest X-Ray	It is done to understand how the applicant's heart, lungs, and bones are functioning. Minor health conditions affect the blood vessels, which can be found out using X-Ray.
HIV	It is conducted to know whether the applicant is HIV positive or not.

Learn what impacts your term insurance premium.

What are Tele and Video Medical Tests in a Term Insurance Plan?

Instead of a physical test, a doctor will call the applicant or video call the applicant. The applicant needs to disclose everything about their health issues about them and their families. The insurance company has all the rights to reject the application if later on it is found that any crucial information was not disclosed.

Term life insurance is a financial necessity. It is best to buy it when you are young as you can avail of it for a lower premium (Read: why should you buy a term plan early in life). As far as a medical test is concerned, it will help you understand your health better, and also ensure that there are no issues with your policy. And why wouldn't you want to be rewarded with a lower premium for being healthy?

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised to exercise their caution and not to rely on the contents of the article as conclusive in nature. Readers should research further or consult an expert in this regard.