A lot of people are aware about the fact that they need to do a health checkup before buying a term insurance plan, but most of them do not understand why. This article aims to help people understand why doing medical tests before buying a term plan.
A term insurance offers financial coverage to the subscriber for a particular period of time. In exchange, the subscriber pays a monthly or annual income for the tenue decided by both the parties. If the subscriber of the term insurance plan has a sad demise, their nominee / beneficiary becomes eligible for death benefit.
If you are still wondering if you or the people in the family who depend on your really need a term insurance plan, there is only one way to find out. The only effective way to understand the importance of a term insurance plan in an individual’s financial portfolio is by getting a health checkup done.
Why do insurers insist on getting a medical checkup?
Although there are some insurance companies that have ‘no health checkups required’ policy, there is a hidden agenda behind the same. Generally, after a medical checkup those individuals with a healthy report are considered to be at low risk. Similarly, individuals who are not healthy are considered to be of high risk. But insurance companies that do not have health checkups automatically consider you as a high risk, thus making you pay a higher term insurance premium. Someone who is healthy, for them this is a bad deal because they have to pay a higher premium because the insurance company presumes them to be unhealthy.
Another thing no one will tell you is that these insurance companies that have a ‘no medical checkup policy’ will ask you to submit the proof of any preexisting medical conditions if you have any. If you fail to submit these proofs, there is a chance of your term insurance claim getting rejected. Also, most of the insurance companies that follow this policy usually offer a low claim value for a higher premium. Now that is something that you don’t want.
The way we look at health today is changing. Nowadays people are becoming more health conscious, they are eating clean, exercising regularly, watching their weight and just trying to lead a healthy lifestyle. Periodic health checkups are usually recommended by doctors as it helps you understand how fit and healthy you are with your current diet and workout regime.
Here are some other reasons why getting a health checkup is important:
- If you get a medical checkup done and the results prove you to be a healthy individual, it may help you in reducing your monthly premium amount. This way you will have to pay less to the insurer and will receive a higher assured sum in case of death.
- Remember what they taught us in school – prevention is always better than cure. A medical checkup every once or twice a year can help doctors diagnose a particular sickness or disease at an early stage. Why wait for the problem to blow out of proportion when you can detect it early and find a cure for it?
- A simple blood test can help you diagnose several life threatening illnesses and diseases like HIV, diabetes, types of cancer, etc.
So now that you have realized the importance of getting a medical checkup, when is it that you are intending to get yours done?