DON’T SKIP MEDICAL TEST WHEN BUYING LIFE COVER
· Today many insurers are offering the convenience of non-medical test life insurance policies.
· However, these plans are not as customer-friendly as they seem because they charge a higher premium than plans that require health check-ups.
· A normal healthy person should realize that he gets charged a higher premium unnecessarily.
1. LIFE COVER WITHOUT MEDICAL TEST
· The policies that don’t require medical tests are usually low-value plans that may not be able to serve a person’s life insurance needs.
· The exemption from medical tests requires you to make a declaration about your health condition in the application form, which puts the onus on you to prove that you are in fine fettle.
· If you hide a health condition, it can have severe repercussions on your insurance cover later.
· Usually a claim is rejected when the company has reason to believe that key facts were suppressed at the time of purchasing the policy.
· In the case of early death (within 2 years of taking the policy), insurers examine the cause in minute detail for which it has a panel of medical experts, who can determine whether a particular illness existed prior to taking the policy.
· Further, there are agencies that can dig out suppressed information by talking to neighbours, colleagues, acquaintances, even family members of the deceased, leading to claim rejection.
· In some cases, a lay person may not even be aware of his health condition, such as border line diabetes, and the insurer rejects the claim by proving that it had ballooned and caused death.
· So, even an unintentional mistake can blow away an individual’s life insurance cover.
2. LIFE COVER WITH MEDICAL TEST
· If a buyer goes through a medical test, the responsibility of determining his health condition shifts to the insurance company.
· Even courts rule that since the company had subjected the policyholder to medical tests and then fixed the premium, the claim cannot be denied.
· Stringent medical tests also mean lower and fairer premium rates for the buyer, as an insurer fixes the premium based on risk perception.
· If you are in good health, you just have to show your insurer that you are a low-risk candidate and the best way to do this is to undergo a detailed medical examination.
· If a person is healthy, can spare the time, wants a higher cover, he should look for a pure protection plan, which will require him to undergo medical tests, as it will work out cheaper and better for him.
· The good news is that many insurers have now started arranging for medical tests at home.
· A detailed medical examination will also tell you how fit you really are and enable you to take corrective steps for your own sake.
3. MEDICAL TESTS PRESCRIBED FOR LIFE INSURANCE
· FMR = Full Medical Report includes fasting blood sugar, ECG, blood count and blood pressure test. In some cases, it may also include certain kidney and liver tests.
· HIV = HIV Test
· BS = Blood Serum Test
· RUA = Routine Urine Analysis
· CTT = Comprehensive Trail-making Test
4. TIPS FOR UNDERGOING A MEDICAL TEST
· This is only meant to keep you away from habits and foods that could lead to abnormally high readings in some tests.
· It does not mean that you should hide facts about your lifestyle or any medical condition.
· 7 days before the test –
o Minimise intake of salt.
o Avoid excessively fatty or spicy foods.
· 3 days before the test –
o Don’t consume alcohol 72 hours before the test.
o It can cause liver enzyme levels to rise.
· 1 day before the test –
o Don’t consume any caffeine product as it increases the blood pressure.
o Avoid nasal decongestants and painkillers unless absolutely necessary.
o Don’t do strenuous exercises like jogging, gym training or swimming.
· 12 hours before the test –
o Get a good night’s sleep to ensure normal blood pressure.
o Don’t eat or drink anything, except water, 8-10 hours before the test.
· 1 to 2 hours before the test –
o Don’t use any form of tobacco.
o Don’t engage in any strenuous activity, just sit back and relax.
5. TIPS FOR AVOIDING REJECTION OF CLAIMS
· Don’t rely on the agent and fill up the application form yourself.
· If you can’t, go through the form after the agent has filled it and retain a photocopy.
· Be completely honest and give correct details in the application form about your age, occupation, income and other insurance covers.
· Don’t withhold any information relating to your health and family medical history.
· Don’t avoid medical tests as it shifts the onus on the insurer, and rules out the chances of the claim being denied on account of pre-existing diseases.
· Cross-check the policy document and notify the insurer if there is any inaccuracy.