What Medical Tests are Required for Term Insurance?

Is Health Check-up Mandatory For Term Insurance?

While not mandatory, various insurers require you to undergo a medical test for term insurance to get a better understanding of your current and potential health conditions in the future. This allows them to adjust the premiums, provide benefits like additional rider benefits, and customised cover benefits to fit your needs.

Why Are Medical Tests for Term Insurance Needed?

Term insurance medical tests are essential for helping insurers evaluate the risk of offering coverage. Since  term plans provide a high sum assured at relatively low premiums, insurers need a clear understanding of your current health condition to make informed decisions. Medical tests offer accurate insights into any existing health issues or potential risks, allowing the insurer to decide whether to issue the policy, determine the appropriate sum assured, and set a fair premium. Along with filling out the application form and submitting ID proof, undergoing these tests ensures proper underwriting and helps prevent claim disputes in the future.

What are the Benefits of Term Insurance Medical Tests?

Medical tests in term insurance plays an important role by making sure you get the right amount of coverage and premium. Here is a list of some benefits of a medical test in term insurance:

• Assess Current Health Status: Life insurance companies use these tests to get a clear picture of your overall health and identify any risks or existing conditions.

• Ensure Accurate Premiums: Healthy applicants are offered lower premiums, while those with underlying health issues may have higher rates based on risk.

• Support Informed Decision-Making: The insurer’s decision to approve or decline the policy is often based on your term insurance health check up results.

• Enable Customised Coverage: Based on term insurance medical test results, insurers tailor your policy. Good health may get you a higher coverage or better terms, while pre-existing conditions are factored in to adjust the policy accordingly.

• Reduction in Claim Rejection: Medical tests help ensure full disclosure in your life insurance application. This reduces the chances of future disputes or claim rejections due to undisclosed health issues.

• Impact the Sum Assured: If your term insurance medical test reports are favourable, you may be eligible for a higher sum assured, which benefits you and your family in the long run.

*Note: It is firstly important to know what is term insurance, and then understand in detail about the medical test for term insurance.

What Are the Medical Tests Needed for Term Insurance?

The following are the main term insurance medical tests done as part of the policy activation:

• Body Mass Index (BMI)
  This test involves calculating the height and weight of the applicant. Your Body Mass Index (BMI) is calculated in this basic test. It serves more as a benchmark for other tests rather than a measure of any condition.

• Urine Test
  A series of tests may be conducted on your urine. This is called Urinalysis. Clinical tests are conducted to evaluate the medical condition of the applicant. Different testing methods are available. The general criteria are to find out any bodily troubles you possess.

• Blood Test
  Regular blood testing is something that any human being should be advised to do. It is the most common testing method to understand a person's medical condition. A blood test might be conducted for a term insurance policy applicant to determine different aspects of the body. All routine checkups will be completed. If you show negative symptoms, the insurer may ask for deeper tests.

• Complete Blood Count (CBC)
  This is the type of blood test where your total number of blood cells will be counted. In this test, any medication side effects you possess can be determined. A complete blood count test is an ideal solution for screening any hidden ailments.

• Blood Sugar
  The blood sugar test measures the quantity of sugar or glucose in your blood. The best use of this test is to diagnose diabetes. For insurance medical tests, the most considered option is fasting blood sugar. The test result of this particular factor determines your health condition in a wide range of medical domains.

• Kidney Function Test
  The test, as the name implies, is ideally used to determine the functioning of the kidney. Blood or urine samples may be collected for the test. Knowing your kidney numbers is critical for policy providers. A weakened kidney function is a sign of potential health limitations in the future.

• Liver Function Test
  The liver is also a vital organ like the kidney. Therefore, it is essential to determine the functional status of the applicant’s liver. The test includes a series of steps to measure the enzyme levels & blood protein content. Conditions like Hepatitis can be diagnosed by using this. A liver function test may act as a mirror of your habits too.

• Lipid Profile
  Lipid profile tests are done to recognize the cholesterol or similar diseases that your blood carries. Knowledge of the abnormal cholesterol/fat content could serve as an important parameter to predict your future medical conditions.

• Echocardiography
  Echocardiography can produce images of your heart. Your heart’s functioning and risk predictions can be monitored. Types of this test include ECG, stress echocardiography, and 3D echocardiography. The procedure might not be as simple as urine or blood sampling but the risks involved in the process are minimal.

• Chest X-Ray
  Chest X-Ray uses a radiation beam to understand how your heart, lungs, and bone are working. This is a functional test in healthcare that the insurance companies highly recommend. If you have minor conditions affecting the blood vessels or airways, it can be found using the X-ray method.

• Human Immunodeficiency Virus (HIV) Test
  This is one of those tests that perhaps won’t be asked by every policy provider. The test, as you might already know, is to determine whether a person is HIV positive. Conducting this test before the policy provision may avoid future confusion between both parties.

• Ultrasonography
  In the insurance context, the major purpose of ultrasonography might be to find out about the diagnosis of serious diseases like cancer. Main vital organ conditions can be diagnosed by this method.

• Comprehensive Trail-Making Test
  This falls under the category of neuropsychological tests. Visual attention is highly covered in this scenario. Insurance providers might use this test to assess your balanced view and psychoanalysis.

• Treadmill Test
  This voluntary test helps you learn about your cardio rate and stress monitoring. It is also a general test for insurance firms to understand your blood flow, pressure rates, and breathing capacity.
  You may also be subjected to various tests depending on your insurance policy provider’s procedures and format. However, you should note that all the above tests are not mandatory to provide term insurance.
  Now that we have understood the term insurance medical test list, let’s understand how a person can assess his/her own health risks, which is also known as risk perception.

What is the Procedure for Medical Tests in Term Insurance?

After submitting the application form, the insurance company contacts the applicant to schedule the required medical tests. They provide a list of nearby diagnostic centres, allowing the applicant to choose a convenient location. Some insurers also offer the option of home testing. The cost of these tests is covered by the insurance company. Applicants are also informed about specific instructions, such as fasting for 8 hours before the tests.

What Is Video/Tele Medical Check-Up In Term Insurance?

Video and tele-medical check-ups in term insurance allow applicants to complete their medical evaluation remotely, either through a recorded video call or a telephonic interview. In a video medical check-up, a medical professional conducts a video interview to gather the applicant’s personal information and medical history. In a tele-medical check-up, the same is done over the phone. This process is especially convenient for Indian expats, including NRIs, PIOs, OCIs, and foreign nationals, who wish to buy term insurance for NRI from Indian insurers without needing to be physically present.

What are the Factors Affected by Term Insurance Medical Tests?

The main objective of a term insurance medical test in India is for the insurance provider to know everything about the health of a term plan applicant. Subsequently, the insurer can tailor personalized term insurance coverage, considering factors such as maximum coverage tenure, optimal premium rates, and other policy benefits. 

The terms and conditions for life insurance plans, especially term insurance, are determined by the outcomes of the medical test mandated by the insurance company. Let's discuss specific policy attributes influenced by the results of a term plan medical test.

1. Premium amount payable 

   The insurance provider's primary aim is to assess the premium amount for your term plan based on your overall health. This model of life insurance relies on evaluating an applicant's risk perception. A thorough physical health examination is essential to determine an appropriate premium quote. Peak physical health results in a lower premium, while identifying pre-existing medical conditions increases the risk. Consequently, individuals with such conditions may face higher premiums for their desired coverage.

2. Sum Assured 

   The medical test in term insurance results influences the Sum Assured in a term insurance policy. This amount represents the insurance benefit your family receives in case of an unfortunate event during the policy term. Optimal health results in a higher Sum Assured, providing better financial coverage. Term insurance policies in India that don't require a medical test often offer a lower Sum Assured, potentially insufficient for family financial needs. Before the medical test, it's advisable to research available term insurance plans and use an term insurance calculator to estimate the premium for the desired Sum Assured.

3. Claim Rejection

   Many people mistakenly believe that even if they have a pre-existing health condition, they can avail of the desired coverage by opting for a plan that does not require a term insurance medical test. At the time of claim settlement, if the insurance provider finds that the policyholder’s untimely demise results from any pre-existing condition not mentioned in their application, the insurer can reject your term insurance claim. Filling out your term insurance application requires you to disclose any existing health conditions that may develop into life-threatening ailments later and result in claim rejection.

Opt for Term Insurance Medical Tests to Ensure Maximum Coverage

Term insurance medical tests are a vital part of the policy buying process, helping insurers offer you the most suitable coverage based on your health profile. While they may seem like an extra step, they ensure transparency, accurate premium calculation, and a stronger claim experience for your family in the future. By undergoing these term insurance health check ups, you not only protect your loved ones financially, but also get a policy tailored to your specific needs.

Wrapping It Up!

The above-summarized tests are not an exhaustive list of medical tests. Insurance companies may opt to do their own custom set of medical tests. There is a chance the tests may be different for different applicants. There is also a huge chance that the insurance executives or agents might be willing to compromise the tests included. 

You should always focus on the policy provider and the best term insurance plan first. The medical tests and their details are only secondary compared to those basic factors. However, it is always recommended to go for a policy with medical tests for credibility.

Note: You should also check the benefits of term life insurance if you are planning to purchase the term insurance plan.

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