Why buy term insurance?
Term insurance is an insurance plan that covers you against the financial problems that tag along with various issues. It is a pure life insurance plan that provides you with financial aid when any specified risks occur and even provides the death benefit to the nominees. If you are the earning member in your family, then you probably have a tension of the fact that what will happen to your family after you. Their needs, lifestyle, dreams everything depend on your income, and once that stops, it will affect their lives. Hence, term plan is a must for every earning member having dependents.
Various insurance companies offer multiple types of term insurance policies to cover different risks. Usually, there is a medical test of the person applying for a term insurance plan that is performed before issuing the policy. The main purpose of performing this test is to determine any kind of health risks involved with the applicant. Although recently there are a lot of advertisements by some insurance companies offering term insurance without any medical test. This attracts many for the time and money saved on performing medical tests. But is it the right way? Does it help the applicant? No, in fact, it has repercussions in the long run.
Why is it necessary to perform a medical test when you buy term insurance policy?
- Affects cost of premium – There are some term insurance policies that are sold under the tagline no medical tests needed. But this is only to grab the attention of people. Insurance companies issuing term policies have a range of low to high risks, and the cost of premiums is decided based on the type of risk the applicant is subject to. This means an individual having a high risk will have to pay more cost of the premium than the one having low risk. The type of risk can only be determined after a medical test. Hence, it is crucial to perform a medical test and share all the results transparently with the insurance company.
- Less risk of a claim being rejected – The companies that offer term insurance policy without medical tests also ask the applicant to declare any type of pre-existing medical conditions. If an applicant fails to do so, then his or her claim can get rejected. When a person decides to buy term insurance policy, he/she relies on that policy to offer cover in times of difficulty. If, at such a crucial point, the claim gets rejected, then it will create difficulties for the insured person as well as his dependents. Hence, to be on the safer side, it is always wiser to perform a medical test and declare the results to the insurance company.
- Helps to determine health risks – It is a human tendency to avoid checking or believing that one can carry health risks even when there is no severe sign. Especially in the current situation of being surrounded by stress, less physical activities and unhealthy eating habits, health has been put at major risk. To determine these risks, a medical check-up is an excellent way.
- A small blood test goes a long way – Be it sugar, cholesterol or any other health risk, a simple blood test can help you understand the health status of your body. This is a good reason to get yourself tested for a good purpose.