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Most people generally loathe the idea of having to undergo medical tests and examinations. There have been many incidences where people shun the idea of investing in a particular insurance, if the insurance company urges them to undergo certain medical tests before approval.
A fair share of people also fall prey to false advertisements run by many insurance companies where they promise to provide health insurance without a medical test. Somehow the possibility of not having to undergo a medical test, just to buy a term plan, seems much favorable. But, are health insurance policies without medical tests worth it? Does it pose a problem later and create a sticky situation that you can do nothing about?
Below are a few assumptions.
Buying an insurance policy that does not require medical tests done could mean that you undertake a “Declaration of Good Health.” With this statement especially as a policyholder, the disclosure onus lies on you. In times of medical insurance requirement, if it is found that you have an existing medical issue not disclosed, your policy claim can be rejected on grounds of the “nondisclosure of medical facts.”
By not disclosing medical, “Material facts” about you, the insurer has no decision power to insure you. There has, however, been a slight change in this since Oct 2015, especially for claims made on a policy existing for over 3 years. In such cases, the insurer has to pay the claim made by the insured.
When you apply for an insurance policy the underwriting team checks your risk factors as well as your Human Life Value. The amount is calculated on your financial and medical underwriting. If your policy is devoid of these processes, there is a chance that your life cover is not of the value you want.
The deducted amount means that you are under insured, something that no policyholder would like, especially in times when they are in dire need of financial support. This again points to the fact that getting a medical test done is necessary to fend off any chances of being under insured.
A low risk cover would even disregard the fact that you are young and very healthy; the only cover you might receive is just Rs.5 Lakh cover. If the policyholder does a medical test and duly submits medical test results, they stand chances of receiving a higher cover as per their requisites.
A snapshot of your health result is, therefore, essential for you as a policyholder and the insurance company. For the policyholder, it allows for lesser chances of rejection on claim of policy, and getting a reasonable risk cover.
The verdict is in favour of medical tests that most insurance companies ask you to undergo. Health insurance policies without medical tests attract a higher premium amount. It is, therefore, advisable to thoroughly evaluate non-medical test polices, before you buy them. Buy them only if they suit your needs, preferences and budget.
We suggest you choose a policy that wants you to undergo medical tests, instead of health insurance without medical tests. The tests are nominally charged, and a full report includes fasting blood sugar, blood pressure test, blood count, ECG and sometimes it could also include liver tests and kidney tests. The tests are not much of a hassle and will only help you in the long run.