Here's How Medical History is Important for Term Insurance

Here's How Medical History is Important for Term InsurancePolicybazaarAverage Rating / 5 ( reviews)
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Walking over the uncertain trail of life financial support systems is extremely vital to ensure stress-free life. In order to secure your loved ones from the strokes of uncertainty term insurance is a reliable tool. A term insurance plan is a basic life insurance plan that provides a sum assured to the nominee of the policy in case of any uncertain event that might lead to the demise of the insured or temporary/ permanent disability. These plans are pure risk protection coverage that has no maturity benefit associated with them. While purchasing a term insurance plan in the UAE, there are certain factors that are to be kept in mind. 

The premium of term insurance plans in the UAE is dependent on the age, smoking status and medical history of the applicant. From the perspective of an insurance provider, thorough information on the medical history of the applicant is vital. The medical history of the application allows the insurance provider to assess their life expectancy using which applicants are categorized in risk profiles. Applicants with life-threatening medical conditions like heart disorder, diabetes, critical illnesses, etc. are categorized into high-risk profiles. By proper assessment companies often reject the application for term insurance in the initial stage. Therefore a full disclosure of the information is crucial while purchasing term insurance plans in the UAE. 

Very often insurance seekers are tempted by providers and plans that have not made it mandatory to undergo medical examination before getting term insurance in the UAE. Although the paperwork might appear intimidating, the importance of medical history and tests is inevitable. There are a plethora of possibilities that you might end up, in case of improper disclosure of medical information, let’s have a look at the ramifications. 

Higher Probability of Claim Rejection

Simply exempting from providing complete medical history does not necessarily mean that medical issues do not exist. While filling the application form for term insurance plans in the UAE that do not require medical examination applicants are supposed to submit a declaration of their medical history and status. In order to ensure a hassle-free claim settlement, it is advisable that applicants disclose all health conditions within the application form. 

For instance, if you are an occasional smoker or drinker this information should be mentioned in the application form. Disclosing the complete information about your health status or lifestyle habits might increase your payable premium but it will ensure that your family and loved ones receive the sum assured when needed the most i.e. in your absence.

Higher Probability of Claim Rejection

The premium payable for a term insurance plan in the UAE is decided on the basis of your life expectancy. Amongst the various contributing factors that affect the premium of term insurance plans the risk perceived by the provider is the most crucial factor. In case the provider assesses the degree of risk to be high which means that the applicant is prone to death due to ailments, disorders or critical illnesses the payable premium will be higher than that of a healthy applicant with no medical conditions. 

Contrary to this providing complete information about your medical status followed by medical examination will provide a detailed insight into your health status. Declaration of medical information will help you to lower your monthly premium in case you are a healthy applicant with no medical conditions. As a healthy applicant ideally, you should not pay as much as a heavy smoker or somebody with multiple medical conditions. A medical certificate stating your health status can help you to save money on the premium. 

Understanding the Scope of Coverage

If your term insurance plan offers the option of skipping medical investigation this is definitely not something tempting. Without medical examination, it is very likely that the available coverage will be significantly lower when compared to plans that have a mandatory medical examination. 

In reality, even for the healthiest applicants, it is very unlikely to get coverage equivalent to that of an applicant who has undergone medical examination before the approval of the term insurance plan in the UAE. 

Conclusion

As it is clearly evident via mentioned ramifications that getting a robust coverage is highly dependent on medical history and examination of the applicant. Disclosure of medical history is equally important as it has a bearing on the total coverage of the term insurance plan in the UAE.

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