Buy a term plan and secure your family
Many insurance providers these days use catchy ads such as the ‘no medical tests required’ clause. But before falling for this, ask yourself, is it really worth buying a term insurance plan without undergoing a medical test?
An exemption from medical tests does not mean that you can hide your health problems behind a curtain. A medical test is compulsory for a term insurance plan in order to determine the health condition of the applicant and provide the best plan as per the results.
However, there are certain basic tests set by the insurance provider that an applicant must take, depending on the age, family history and the kind of insurance.
The main reason for these medical tests is for the insurance provider to know everything about your health so that they can create a plan that suits your needs and requirements the best. There is no one perfect term plan that can work for anyone and everyone. This is why what may suit your family or friends the best may not be the optimal choice for you. For this reason, the term insurance plan that does not require a medical test may not be the right choice for you.
The primary goal of any insurance provider is to determine the amount of premium you will need to pay for your term insurance plan. The insurance industry works on risk perception. Therefore, it is important for your insurance provider to know your medical condition before setting the premium you need to pay.
If you have any pre-existing health conditions, the premium is likely to be higher since the risk factor involved is high. In most cases, people think that they can get a good deal on the term plan despite having a pre-specified medical condition by opting for a term insurance plan that does not require any medical test. However, this is not the case. Most of the insurers reject the policy claims if they find out the death of the insured is caused due to a pre-existing medical condition.
Another important aspect of a term plan is the sum assured. This is the amount of money that your dependents are paid in case of any unfortunate situation occurring during the term of your insurance policy. The medical tests help the insurance provider in knowing everything about your health condition. In this way, they can provide you a higher sum assurance if you are comparatively healthy.
The term insurance plan that does not require any medical test is a low-value plan and often offers a lower sum assured even if you are in the best of health. In most cases, the sum assured is insufficient to cover the finances of your family and to sustain their current lifestyle.
The Bottom Line
It is the best option to go for a term plan as soon as you start earning a stable income. This is because around that time you are likely to be in the best of health which means the insurance provider will reward you with a lower premium as the risk perception is low.
It is important to understand that a term insurance plan without a medical test does not serve you as well as the term plan that requires a medical test. The process can seem a little tedious, but it is always beneficial in the long run. This is because the ultimate goal is to leave your dependents with enough money to sustain their lifestyle after you are gone. With the right plan, you will be certain of that.
Therefore, if you are planning to buy a term insurance policy, it is good to go ahead and take the medical test, as ultimately, there is no escape from them.