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Why Are Medical Tests Important While Buying Term Insurance?

Susheel Kumar
Why Are Medical Tests Important While Buying Term Insurance?

The most reliable & popular method of providing financial security for your family in the unfortunate event of your early demise is term insurance. You can determine the required coverage amount and choose other benefits and features after taking into account your income, expenses, savings, loans, and liabilities. Based on the options you've chosen above as well as a few other factors like your age, way of life, level of health, etc, the insurer determines your annual premium.

Why Is A Medical Test Important While Buying a Term Insurance Plan?

Here are some reasons why a medical test is important while buying a term insurance plan:

1) High Coverage

A term insurance policy without a medical exam may offer less coverage because the insurer wants to offset the risk associated with the life assured's concealed medical conditions. So, to get better and more accurate coverage that meets your needs and preferences, it would be best to purchase a term insurance policy that requires a medical exam.

2) Low Premium Rates

The appropriate amount of the policy premium that must be paid is determined by a risk assessment of the life assured's health, which is assisted by a medical exam. A fit and healthy person can anticipate paying a low premium. On the other hand, due to the high risk involved, a pre-existing medical condition is likely to result in a higher premium.

3) High Sum Assured

Sum assured is the amount a nominee receives if the life assured dies before the policy's expiration. Given the low risk, a healthy life can anticipate receiving a higher sum assured following the medical examination. It is therefore advised to have a term insurance medical exam because policies without any medical tests frequently offer a low sum assured, which may not be enough to meet your family's future financial goals. 

4) No Claim Rejection

If you have a pre-existing condition related to your heart, blood pressure, diabetes, or asthma, it would be best to refrain from purchasing term insurance plans without a medical exam. If the life assured passes away before the policy's expiration date in this scenario, the insurance company may deny the beneficiary's claim request by arguing that the life assured purposefully concealed their true health conditions at the time the policy was first issued.

Why Do Insurers Ask For Medical Tests Before Issuing A Term Insurance Policy?

Medical tests are made in such a way as to help provide deeper insights into your health and lifestyle habits and help insurers assess the long-term risk associated. If your medical records show that you are in good health, the insurer will approve your request for term insurance at standard rates, without altering the terms and conditions, because you are considered a standard life.

However, if the results of your medical exams are less than ideal, you may be labeled as having a sub-standard life, and your life insurance premiums will be higher. They might also impose additional limitations on your policy, or worse yet, they might reject your proposal for term insurance.

Importance of Term Insurance Medical Test: How can undergoing Medical Tests benefit you?

Having a term insurance plan can help you create a financial backup for your family, in case of your untimely death. In your absence, the insurance benefit from the term policy will take care of all financial needs such as your children’s education, paying back loans, and managing household bills. 

Going through medical testing before buying a term insurance policy will help you honestly and accurately declare all of your existing medical conditions, lowering the likelihood that your family's claim will be denied. It also aids insurers in estimating the risk they will cover.

What will happen if you hide or provide the wrong details to the insurer?

You are not entitled to use medical examinations for a term or other insurance policies as an excuse to submit false information on the proposal form. If the insurer discovers that you knowingly attempted to conceal information or provided false information on the proposal form and you paid multiple premiums, they may reject your family's claim on the grounds of factual misrepresentation. Furthermore, due to the nature of term insurance, you won't be involved in any way when a claim is settled.

Therefore, make sure to notify the insurer as soon as you become aware of any diseases or medical conditions you may have neglected to disclose to them. Your policy will be revisited, and they will decide whether to raise the premiums and keep the policy active or to terminate it entirely.


Even though it is made for yourself, a term plan protects your family from uncertainties while you are away.

Although purchasing a term plan that includes medical exams may result in a higher premium, it spares your loved ones the hassles of the claim settlement procedure. The more open you are about your medical history, the quicker and simpler it will be to process and approve your claims. Simply showing up for medical tests transfers all of your risks to your insurance company, which won't be able to reject a claim if something terrible happens to you.

Leaving your family with enough money to maintain a comfortable standard of living and supporting them in realizing their dreams without having to make compromises is the aim of term insurance.

Susheel Kumar
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