Friday, 2 November 2012

What Medical Exam to Expect in a Life Insurance

Life insurance is one of the most important types of insurance plans that provides you with a lump sum at times of necessity. If you buy a life insurance policy and something unfortunate happens tomorrow, then your beneficiaries will be entitled to the insured sum of money. Now-a-days people are becoming more aware of the the importance of insuring money in order to secure life and thus buying life insurance policies. Usually whatever life insurance plan you choose- term life, endowment policy, whole life or any other plan, you have to go for a medical exam as demanded by the terms and conditions of your plan. 

Need of medical exam in a Life Insurance

Generally many people get nervous at the thought of medical tests prior to purchasing a life insurance policy. If you are clenching your fist at this thought, you must understand that insurance is a kind of risk management. Many people who may be exposed to the similar kind of risks invest money on insurance policies. So the insurance medical exam for life insurancecompany needs to determine how much premium they need from a potential buyer. For example, if you are middle-aged and have many health issues, they may consider you to die early and hence will charge more premiums from you during the early phase of your life. On the other hand, if the insurer thinks that you will live longer, you need not pay a majority of the premiums during the early period of your life. Thus longevity charts determined by the statistics of mortality rates of people at different ages are needed to find what risk an insurance company is taking by choosing a particular policyholder.

What things you can expect during your life insurance medical exam?

After knowing how much insurance you are interested to buy, the insurance company will require information regarding the following points:

  • Your medical history

  • Your family's medical history

  • Your lifestyle habits like drinking, smoking, drug use, exercise habits etc.

These are the common medical exams:

  • Measurement of your Pulse-rate, Blood Pressure, Weight and Height

  • Blood test for checking various conditions like HIV, level of cholesterol, glucose, liver or kidney disorders etc.

  • Urine test analysis, primarily for determining specific medications or use of any illicit drugs

Once the insurance company gets the results, it will determine the premium to be paid by you. You can also get a copy of the results, if required. If there is any condition that can shorten your life, you will have to pay more premium.

In India, most of the insurers require medical tests for the life insured. The life insurance plans that do not require medical exams are low-value plans. Even if you are young, enjoying a good life in good health, these low-value plans will not provide you coverage for more than 5 lacs. Similarly, if you are middle-aged and in good health, you will not get a coverage for more than 2 lacs.

Thus it is better to declare medical conditions as hiding the conditions can worsen the situation when you need the insured money. Your claim may get rejected if the insurer comes to know that the medical facts were suppressed at times of buying the policy. So it is better to go for medical test and then pay less. Again going through these preliminary tests will help you to take immediate measures if you are diagnosed with any medical condition.

Author Bio: I am Aja Levis, freelancer consultant and love to share my ideas and views on financial sector of India.

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