Health insurance plans are blessing for paying your hospital bills in the times of distress. Like other insurance policies, it is available in a lot of schemes ensuring a complete and critical illness cover. With the outbreak in diseases and chronic health issues, the culture of health-insurance is prevailing in the society. However, the insurance companies are taking steps to regulate it on their behalf by conducting pre-policy medical checkups, a series of medical tests to gauge the health status of a person.

Welcome the Check-up!

The check-up is conducted by the insurance company to draw out the risk factors before providing insurance to an individual. These are conducted if the person asking for insurance is more than a particular age, usually, 40 years or above or if the value is more than the average amount. There are a variety of criteria to provide policy cover to a client, depending on age, gender, and money input. However, the usual tests include a blood test, serum test, ECG, blood sugar, blood pressure, lipid profile, and blood count, among other generic tests.

Mutual Benefits

These days, with the rise in competition among different policy firms, the companies are paying for the tests to attract customers. Either they pay-before-hand (entirely or some part of it) or pay after the deal is cracked, either way giving incentives to the customer.  Through the tests, policyholders indeed get an insight into their health and thus take necessary care.

From the perspective of the company, the tests act as a paradigm against which the company can understand the situation and decide accordingly. Any pre-insurance illness would be revealed through the test and in this way, the policyholder cannot exploit the company's rights.

Also, it gets easier to file a claim for both the company and the individual. The chances for unfavorable results and unjust claims are reduced due to the efficient paperwork and these pre-medical tests as a witness.

Aftermath- Pre-Policy Testing

Under the company's policy proposals and other terms and conditions, if the test shows any prolonged illness or deadly disorder, the company can sort out the issue by taking one of these steps-

• Higher Premium -The insurance company could provide the insurance, but at a higher premium to incur its expenses over the issues detected. It depends on various other factors like the severity of the problem and the age of the client.
• Permanent Exclusions -In a few cases, the company does provide the policy but with the special provision to not cover the illness detected. It happens when the advisor to the company perceives the disease to be too risky. In such a scenario, due to a restriction imposed, the individual will not be able to claim the payment.
• Rejection -At times, when the detected illness is very critical and requires frequent medical attention, the company might reject the policy and would benefit out of the pre-checkup.

Also, if someone hides a condition intentionally and the company discovers it at a later stage, it has the right to reject the policy and dismisses the claim in such a case.

No Risk, no Gain

For the clients, the medical test does seem a fuss. It is always the gathering up of courage whenever you step inside the hospital as to what if I have this or that, our hypochondriac self. Moreover, it is considered as a hurdle by anybody with already existing health issues because of the harsh policies of the company.  But unless you don't come out, don’t give in to the risks, how can you even enjoy the benefits? Insurance agents also believe that medical check-ups sum up the conditions imposed for both the insurer and the client.  Sudhir Sarnobat, CEO, Medimanage.com, says that it is always good to go for medical check-ups because it provides you an update on the health and gives a reference point to the insurance providers.

Strategies to Reduce Investment Risk

• Strike a Balance -Allocate your investment wisely with a balance of risks. Don’t rush while making a decision; instead,  give time and choose what suits you best.
• Thrive by divide- Maintain a diversified portfolio by not just putting entire money in single medical insurance. Invest your money resources carefully and don’t put in a hefty amount for it as it might not benefit you. Calculate your risks well.
• Market Pace - Keep yourself updated with the whereabouts of the market, the new schemes and update your policy accordingly for it might render useless when required. Though money matters aren't a joke in a comedy clubhouse, yet in both the scenarios, timing is everything. So, don’t let the market pace mess with your pace. Rather, ride through the fluctuations and volatility by taking keen steps.
• Set a Risk Threshold- Mark a limit, a risk appetite. Digest the risk or throw the risk. Be clear and mature as an investor.
• Beware the Temptation to be a Part of a Herd- Usually, a common trend is to see how one family member or colleague buys insurance, the entire clan of the close people follows thereafter and end up buying the same policy without realizing it’s worth to them. Avoid jumping on the bandwagon, just because it appears to a bargain or just because Sharma Ji can’t be wrong.
• Research and not Gamble- Evaluate, seek advice, and then decide. There's no rush. Don’t just invest for the sake of it.

The Final Words - Health is a wealth

We all earn to keep ourselves healthy, fit, and sound. Loss of health is not negotiable. We can’t compromise with it as health is the most important pillar to keep us going. Health insurance is certainly a good measure to have a shield to guard your family and reduce stress during unlikely times, but it completely depends on you how you make out of it. With commercialization setting in and people fooling agencies by concealing their illness, it has become a necessary step on the part of companies to put a pre-medical test. Be fair; be wise; your health is in your hands.

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