Medical Test for Term Insurance

Which medical tests are required for term insurance?

The type and number of tests depend on factors such as age, sum assured, lifestyle habits, and medical history.

Medical examination report

This is a basic health assessment conducted by a medical professional. It includes:

• Blood pressure (BP) reading

• Body Mass Index (BMI)

• Medical history questionnaire

• Lifestyle habits such as smoking, alcohol consumption, and physical activity

Blood test

A blood test provides detailed information about the applicant’s overall health. It helps detect conditions such as:

• Diabetes

• Cholesterol imbalance

• Hypertension

• Risk factors for cardiovascular diseases

Urine test

The urine test helps identify early signs of:

• Diabetes

• Kidney disorders

• Urinary tract abnormalities

These conditions, if undiagnosed, can lead to serious health complications in the future.

Electrocardiogram (ECG)

An ECG records the electrical activity of the heart. It helps identify irregular heart rhythms, previous heart issues, or other cardiac abnormalities.

Cardiac Treadmill Test (CTMT)

The CTMT, or stress test, is a test used to determine how the heart responds to physical exertion. The applicant will walk or run on a treadmill while heart rate, blood pressure, and ECG changes are monitored. Coronary artery disease is the major factor checked this test, along with the cardiac fitness of the patient.

Echocardiography

Echocardiography, or an echo test, is a non-invasive ultrasound examination of the heart. It evaluates:

• Heart structure

• Valve function

• Blood flow

• Pumping efficiency

This test is usually recommended for older applicants or when initial test results indicate potential heart-related concerns.

Special tests

In certain cases, insurers may request additional medical tests based on the applicant’s health profile, age, or sum assured. These tests are conducted as per the insurer’s specific requirements.

Procedure for medical test for term insurance cover

Once your term insurance application is submitted, the insurer initiates the medical examination process to assess your health profile. 

Step 1: Medical test coordination

The application is followed by direct communication from the insurer regarding the medical tests that need to take place. The applicant is given a list of diagnostic centres close to their residential area.

Step 2: Choosing the test location

You can select a diagnostic centre that is most convenient for you. In some cases, insurers also offer the option of a home visit, allowing medical tests to be conducted at your residence, subject to the insurer’s facilities.

Step 3: Scheduling the appointment

Once the location is selected, you can schedule the medical tests at a date and time that suits you. This flexibility ensures a seamless and applicant-friendly experience.

Step 4: Cost of medical tests

In most cases, insurers bear the cost of medical examinations when the tests are conducted within India. However, if you reside overseas and choose to complete the medical tests in your country of residence, the expenses may need to be borne by you or through the respective sales channel.

Step 5: Pre-test instructions

Prior to conducting medical tests, some specific pre-test guidelines may be shared by insurers. These include fasting for 8-12 hours, especially in tests that involve blood sugar or lipid profile analysis. Adherence to these is important so that standardised results can be obtained.

Step 6: Completion and evaluation

After the tests are completed, the reports are reviewed by the insurer’s underwriting team. Based on the findings, the policy terms, premium, and coverage are finalised.

Legal and ethical considerations of medical testing

A term insurance company must consider several legal and ethical factors when conducting a medical test. It is for the protection of the prospective policyholder.
 

A term insurance medical test involves the following legal aspects: 
 

1. Conducting the tests in accordance with healthcare regulations.

2. Making sure the tests are appropriate and necessary.

3. Obtaining the informed consent of the applicant.
    

In medical testing, ethical considerations are as important as legal obligations. These include: 
 

1. The results of the test must be kept confidential.

2. Providing only authorised personnel with access to the information.

3. Avoiding discrimination against test results, like rejecting claims unjustly.

4. Honouring the applicant's right to know their test results and what they're being used for.

5. Using the test results fairly to assess risk.

Factors affected by term insurance medical test

The key elements of your policy are determined by your medical test for term insurance. Insurers use these data to evaluate your risk profile and tailor your policy accordingly. A term insurance plan is influenced by these tests in the following ways:

Premium amount 

Medical tests are used by insurers to determine your premium. Good health typically results in a lower premium since you are considered a low-risk individual. A higher premium may be applied if the tests reveal any existing health concerns or risks. In this way, you can be sure that your price is fair and aligned with your health status.

Sum assured 

Your health condition directly affects your eligibility for a sum assured. A favorable medical report increases the likelihood that applicants will receive higher coverage and that their families will be better protected financially. In contrast, if medical results point to a potential health risk, insurance companies may offer a lower sum assured. You should use a term insurance calculator before applying for coverage to get an accurate estimate.

Claim approval or rejection 

By providing transparent health disclosures through medical tests, claim approval is significantly improved. The claim may be rejected if an applicant withholds information or opts for a no-test plan and passes away due to an undisclosed condition. At the claim stage, medical tests reduce the risk of disputes and denials.

Claim settlement efficiency 

Insurance companies can process claims more efficiently when detailed medical records are maintained on file. Clear documentation of the applicant's health status streamlines claim settlement, minimising delays and ensuring beneficiaries receive assistance on time.

Policy personalisation 

Insurers can suggest suitable add-ons based on the findings from the medical test. For instance, critical illness coverage would be ideal for an individual with a high cardiovascular risk. Therefore, based on the test findings, your health policy can be tailored to meet your needs..