Have you seen advertisements of life insurance companies which say that no medical test is required? It might seem like a dream come true for the customers as well. However, is this the right thing to do? Today, life insurance companies do provide policies without medical tests but you must also be aware that such policies might not be as friendly as they look. You cannot judge a policy solely based on the criteria of a medical exam. Here are some pointers when you buy a life insurance without medical exam.
Declare your medical history
Life insurance policies without medical tests do not mean you can hide your health problems. Almost every insurance policy wants a declaration regarding your health condition while filling the application form. The insurance premiums are fixed based on the declaration of your health condition and it is taken as a key factor while disbursing the claim in case of the insured person’s death.
Never think you can cheat the insurance company by hiding the facts. In case of early claims, where the insured person dies within two years of taking the policy, insurance companies check every fact to the last minute details. The insurance companies have their own team of medical experts who can cross verify what the insured person had declared about their health while buying the policy.
Life insurance with medical test is cheaper
Policies having medical tests usually have lower premium rates. The rate of a life insurance policy is fixed by the company based on the risk factors like age, health condition or the profession of the customer. For example, if a medical examination of two people reveal that one person has no diabetes and the other person is pre-diabetic (borderline case), the person who is having normal health will be charged with a lower insurance premium. In case both the people buy a policy without medical tests then both will be charged the same premium.
Insurance companies save costs by not having medical tests
With the help of medical tests, insurance companies can save losses with fraudulent claims. However, the charges of a medical examination bornes by the insurance company which comes up to 3,000 to 5,000 rupees in certain cases. So, if the insurance company does not make the medical test mandatory, they can get more customers and charge lower premiums. The main intention of not having a medical test is passing the responsibility to the customer to ensure that they fill the right information about their health status and not just to save money. It also saves time for the customer who does not have to go all the way to the diagnostic center, fix an appointment and take the medical test.
Beware of low insurance coverage
Life insurance policies which do not have medical tests usually provide very low cover. These plans might be available only to young customers who are well below thirty years of age. The maximum cover one can get is up to 5 lakhs. For customers aged around 30 to 40 years, the coverage could be as low as just 2 lakhs.
Life insurance is one of the most important financial products. It is to ensure that your family or dependents get to the lead the same quality of life even in case of an untoward incident. The most important thing to ensure when you buy a policy is to buy an insurance with adequate coverage and declare all the facts to the insurance company. This is to ensure that there are no problems while making the insurance claim.
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