Here's how your Family Medical History affect Term Insurance

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  | Published: 20 March 2020 | Last Updated On: 08 February 2021

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With increasing awareness amongst all classes of society, there has been a substantial rise in the prices and demand for insurance in the UAE. There are a plethora of factors that affect the premium of term insurance plans in the UAE such as age, smoking status, health status, etc. Very often people with a clean health record are denied coverage due to their family history. Family’s medical history is one of the most crucial factors that is taken into consideration by the insurance providers while approving the application for term insurance plans. 

While applying for a term insurance plan in the UAE applicants are asked several questions about the medical history of their family members. Insurance providers document the family medical history and assess the life expectancy of the applicant. If the family members of the applicant have died from cardiovascular diseases, cancer, or smoking-related illnesses before the age of sixty then there is a high probability that the provider will not accept your application. Similarly, in the case of stroke, kidney-related issues, organ failure, mental illnesses, Alzheimer’s and Parkinson’s disease it is very likely that the provider will not approve your application. 

Importance of Family’s Medical History from the Insurer’s Perspective

The history of diseases in a family affects the rate of insurance plans in the UAE since these diseases are hereditary it is very likely that the applicant will capitulate the same disease. The insurance industry works by analyzing the life expectancy and probability of paying out the sum assured. If the life expectancy of the applicant is less due to any underlying medical condition the insurance company will increase the premium of the plan or in the worst-case scenario the provider will not offer any coverage at all. 

In order to understand how the industry works let us consider an exemplary scenario. Suppose if one of the family members of the applicant has suffered from diabetes, it would not impact the premium much. However, if several members of the family have been diagnosed with diabetes, the premium of the term insurance plan will be affected extensively. 

One of the most important things to be considered while applying for a term insurance plan in the UAE is the correct disclosure of information. It is very likely that disclosure of correct information will increase the premium of your term insurance plan in the UAE but it will ensure that your family gets the money when they need it the most. 

Importance of Term Insurance

There are several people that skip insurance policies due to high premiums, which might appear as a massive saving initially but is one of the worst mistakes to make. Purchasing a term insurance plan safeguards and protects your family during phases of financial hardship and offers peace of mind. 

It is always difficult to lose a loved one, but it becomes even agonizing when you are left with a massive burden of outstanding debts. With the right term insurance plan in place, you can ensure that your loved ones don’t have to struggle to pay outstanding debts. Different insurance providers are different and consider applications differently. Therefore applicants with family medical history should look for providers that can offer coverage at the cheapest premium.

Term insurance gives you the freedom and peace of mind to use your potential to the fullest during the economically productive years of life without worrying about the future. In case of any unfortunate event leading to the demise of the policyholder, the provider pays a death benefit to the nominees which help them to make ends meet in the absence of sole breadwinner of the family. 

Impact of Family’s Medical History on Insurance

The cost of the term insurance plan is directly dependent on the risk profile of the applicant. Applicants with pre-existing ailments or medical conditions pose an increased degree of risk over the insurer which is the main reason behind increased rates of premium. 

Family history plays a crucial role in determining the rates of premium. Hereditary diseases increase the risk profile by reducing the life expectancy of the applicant thereby increasing the overall premium of the plan. However, insurance providers in Dubai do not consider family members over the age of 60. 

Here’s a quick rundown on the medical conditions that can increase the rate of term insurance plan in the UAE-

  • Cardiac disorders
  • Stroke
  • Cancer
  • Diabetes
  • Kidney diseases
  • Sickle-cell Anemia
  • Huntington Disease
  • Alzheimer’s Disease
  • Parkinson’s Disease
  • Aneurysm 

The list of diseases and guidelines vary from provider to provider. Some of the insurance providers would increase the premium if parents suffer from any of the conditions mentioned above. Other insurance providers will add to the original premium if any of the family members passed away prematurely from a life-threatening disease. 

Medical Examination

In order to assess your current health status, the insurance provider will depute a medical practitioner to conduct a medical test. Usually, the applicant has the flexibility to choose the time and place of the medical examination. The entire procedure lasts for approximately 30 minutes and is an integral part of the issuing process from the insurer’s perspective. 

The medical practitioner begins by asking questions about the medical history of the applicant and their family members followed by a physical examination which includes the following.

  • Documenting the height and weight of the applicant
  • Checking the blood pressure
  • Testing response time and cognitive abilities
  • Collecting samples of bodily fluids (urine, blood, saliva)
  • Running an ECG to identify the functioning of the heart 

The primary objective of the insurer behind carrying out a thorough medical examination is to identify the current health status of the applicant. Healthy applicants are supposed to pay lesser premiums in comparison to applicants with poor health status. By carrying out medical examination the insurance providers try to identify red-flag issues like:

  • High Blood Pressure
  • Unhealthy body mass index (BMI)
  • High cholesterol and triglyceride levels
  • High levels of blood sugar
  • Malfunctioning of the kidney or liver
  • Autoimmune diseases like Rheumatoid Arthritis
  • Immunosuppressant disorders like HIV, AIDS
  • Hepatitis
  • Diabetes
  • Evidence of smoking tobacco or marijuana
  • Signs/ Symptoms of cognitive impairments 

Before the applicant undergoes the medical examination it is recommended that they pen down the list of medications they’ve been consuming along with the name and details of the medical practitioner. Furthermore, applicants should avoid consumption of alcohol, nicotine, caffeine, salty and fatty foods a day before the tests. One should get at least 6-8 hours of sleep and should avoid smoking on the day of the medical examination. With these tips, the likelihood of positive results during the medical examination increases substantially. 

Conclusion

The medical history of the family is imperative when it comes to buying a term insurance plan in the UAE for both the insurer and the insured. The better your health status would be the lesser you’ll have to pay while buying term insurance in the UAE. Applicants should not wait for the time they manage to accomplish their fitness goals of quitting smoking or losing weight and get themselves and their families insured. In order to ensure that you get the best coverage at the best payable premium, it is important to carry out thorough market research followed by comparative analysis.