Importance of Medical Tests Before Buying a Life Insurance Policy

The purpose of performing medical tests before buying any life insurance policy is to determine the health status of the applicant. These are routine health check-ups which help to evaluate your overall health before buying a life insurance policy. It enables insurers to assess the risk level, which determines your eligibility, premium amount, and the sum insured. 

Read on to understand the importance of medical tests before buying life insurance!

Importance of Medical Tests in Life Insurance

Here are the key advantages of undertaking a pre-policy medical examination: 

• Informed Decision-Making

Medical tests reflect your health quotient, which helps the insurer to decide the coverage amount and the premium. If the applicant has a healthy body, then they may qualify for higher coverage at a lower premium, whereas if they have certain underlying health conditions, then they may need to pay a higher premium to get substantial coverage. 

It also helps the applicant to make an informed choice about adding riders or opting for a suitable coverage amount. 

• Reduced Risk of Claim Rejection

By undertaking a medical examination, the applicant provides accurate information about their health status to the insurer. It reduces the risk of claim rejection by the insurer based on the non-disclosure of information clause during the claim process.   

• Assessment of Health Status

Through a medical examination for a life insurance plan, the applicant can easily know about their underlying health conditions and assess the potential risks associated with them. Thus, it will help them make better and healthier choices in the future. 

• Appropriate Premium Calculation

The insurance company studies the medical test reports before deciding the premium amount. If the reports suggest that the applicant is healthy, then they will be eligible for a higher sum insured at lower premiums.

In contrast, if the reports reveal any existing health issues, the sum insured may be reduced, but appropriate coverage for the existing health condition is ensured. This way, the cost reflects the actual risk, and the policyholder pays a fair premium based on their health and lifestyle. 

• Policy Customisation

Taking medical tests before purchasing a life insurance policy helps the insurance company to precisely assess the health risks and align the policy according to the policyholder’s specific needs. 

This process helps get accurate coverage as per individual health conditions, enhancing policy flexibility and ensuring comprehensive protection. 

Common Types of Medical Tests For Life Insurance 

Here’s a list of common medical tests for term insurance in India, which helps the insurer to get a clear overview of the health status of the applicant: 

1. Health Examination Report

A regular health examination report includes blood pressure readings and a Body Mass Index (BMI) report. The BP reading is used to monitor hypertension, and the BMI report uses your height and weight to calculate the body fat composition. 

2. Laboratory Tests

It can include a few blood tests and a urine test to analyse your overall health condition and check for any potential health risks. 

1. Urine Test: A medical examination of the urine sample helps to determine the overall health and aids in the detection of diabetes or kidney-related issues.

2. Blood Test: Blood tests can include:

• Complete Blood Count (CBC): This test offers insights into several components of your blood and helps detect several underlying conditions, such as infections, anaemia, and leukaemia. CBC also provides an overall blood cell count to offer an overview of the overall health status.

• Blood Glucose Test: It helps to measure the glucose levels in the blood and identify if someone has diabetes. This test provides crucial insights into potential health risks.

• Lipid Profile Test: A lipid profile test helps to measure cholesterol levels in the body and can detect the risk level of cardiovascular diseases.

• Liver Function Test: It helps to evaluate overall liver health and identifies potential liver infections by analysing enzyme levels in the blood’s protein content.

• Kidney Function Test: This test helps to evaluate the kidney performance and may involve a blood test and urine test as well.

• Human Immunodeficiency Virus (HIV) Test: It helps to detect the presence of HIV in your bloodstream. While not all insurers don’t demand this test, some may ask for this report.

3. Specialised Tests

Some insurers may ask for certain specialised tests to gain deeper insights into your health status. They can include:  

• Electrocardiogram (ECG): An ECG report helps to assess heart functioning and detect several potential cardiac risks.

• Chest X-ray: It uses a radiation beam to analyse the lungs and chest cavity to detect problems in the heart, lungs and bones.

• Treadmill Test (TMT): This test records the heart's response to cardiovascular exercise, helping analyse abnormal heart rhythms, breathing potential, and blood flow. It mainly helps to detect coronary artery disease.

• Echocardiography: Provides deeper insights into the functioning of the heart.

• Ultrasonography: Offers a detailed examination of internal organs and helps to detect potential tumours or any other major organ issues.

The requirement of medical tests for life insurance differs based on several factors, such as the applicant’s age, health profile, and internal policies of the insurer. Apart from that, people with certain lifestyle habits, such as smoking, alcohol consumption, and higher risk factors like a family medical history of critical illnesses, need to undertake medical tests regardless of their age. 

Taking a comprehensive medical test before purchasing life insurance ensures that the coverage is customised as per your needs, providing financial security and peace of mind.