People have understood the necessity of saving money and investing in financial products that can help them safeguard their and their family’s financial future. The ongoing Coronavirus(COVID-19) pandemic has hampered the economic well-being of people to a great extent and made them realize how unpredictable life can be. Therefore, it becomes necessary to be prepared for any eventualities.
Investing in life insurance is the need of the hour.With many options available in life insurance, it is advisable that you buy a term insurance policy. If you need to learn more about the term insurance meaning, read on.
A term plan is a life insurance policy that offers you cover for a particular duration. If something untoward happens with you during the policy tenure, the insurer pays the death benefit to your family members. A term plan provides a high sum assured at a nominal premium. With this amount, your loved ones can meet the household expenses and achieve their life goals.
While applying for a term plan, you will have to undergo certain medical tests. It will help the insurer to get a fair idea about your medical condition. Based on this, they can determine the premium for a suitable sum assured.
Which tests are covered?
You will have to undergo routine medical examinations like a blood test and urine test. The blood-related tests include check-ups to inquire about your hemoglobin, complete blood count,differential blood count, and fasting plasma glucose. Urine tests provide information about your cotinine levels. They can also ascertain the cholesterol levels as well as a terminal illness like AIDS. If your family has any hereditary medical issues, then you may need to do additional tests. Also, you must be genuine with the insurer about your smoking and drinking habits.
Why is a medical evaluation necessary?
There are term plans that do not require you to undergo any medical test.However, you will still have to declare the details about your current health condition in the application form. Many people consider it as an opportunity to hide their existing medical problems and buy a term plan without getting any medical tests done. However, if you do this, your family members will have to bear adverse consequences while applying for claim settlement. The insurer can reject the claim if they find out that you had any undeclared health problems.
Another reason for going through medical tests while applying for a term policy is to ascertain the premium you will have to pay. The health risk associated with a person influences the premium of a term plan. For instance, if a person’s blood sugar levels are nearing the borderline, the premium will be comparatively higher compared to a policyholder with a normal sugar level. So, if your reports indicate that you are a healthy policyholder, the insurer will charge you a cost-effective premium.
Additionally, if you want a high sum assured, do get yourself examined. Based on your age and health-related risks, the insurer determines the sum assured of your policy.
When you opt for medical tests prescribed by insurance companies, there is less probability of your nominees’ claim being rejected. Therefore, you lead a peaceful life, as you have ensured the financial well-being of your dear ones.
What is the procedure?
Once you submit the application form of the online term policy, the insurer will contact you to undergo the required medical tests. They will also provide you with a list of medical centers where you can take the tests. Alternatively, you may get the facility of home-testing. The insurer pays the complete cost incurred for these tests.
It is mandatory to invest in a term insurance planto provide the much-needed monetary stability to your family against the uncertainties of life. You can use a term plan premium calculator to know how much money you will have to pay for the ideal sum assured.You can find the term plan premium calculatoron the insurers’ and aggregators’ websites.