Insurance companies have various ways in which they lure customers. One of them is by offering life insurance policies without medical tests. These policies may look and sound very interesting and useful, but in reality they have some very serious problems attached to them. For starters, they are very customer-unfriendly plans and claims take longer to get settled. This is because the insurer will always view a policyholder who hasn't undergone a medical test with a lot of doubt. The insurer will put such a policyholder in the high-risk category and will charge a higher premium as well. So if you are thinking about buying a health insurance policy without medicals, think again.
Pay less after a test
If you undergo a medical test, you will have to pay a lower premium. This is because a healthy person is automatically charged a lower premium and vice-versa. If you are healthy then you would be entitled to a price-cut. However in policies without medicals, the premium is fixed and people, both fit and unfit and charged the same. This proves to be unprofitable for a healthy person.
Detection is possible
Many a time policyholders pay a price for being ignorant about a medical condition. For example, if a person has borderline diabetes at the time of buying the policy and it leads to serious complications and eventually death, the claim may not be paid out. Such cases are considered to be insurance fraud, but in reality they aren't frauds because the policyholders were genuinely unaware. However with no way to determine that later, it is always better to get tested for illnesses before buying the policy.
When to buy such a policy
At times people do buy insurance policies without medicals because there are some valid reasons. First of all, the online term plans do not always ask for medical tests. The policy is purchased over the internet. At such times, the policyholder doesn't have much of a choice. Then, for certain health and life insurance policies for senior citizens, medical tests are not required. This proves to be helpful as a lot of seniors find it almost impossible for go for tests on a treadmill, etc. In such cases the insurance companies ask for a true declaration of all the medical conditions and it is better to be truthful with the declaration than put an aged parent through the vigorous tests.
Should I go for it?
Experts always suggest you to go for life insurance only after undergoing a medical test. The tests aren't difficult to take and it barely takes any time. So if you have the option, do not go for the insurance policies that do not require medicals. Remember that at the time of paying out the claim, they will scrutinize your policy and your personal details like medical history and lifestyle habits and if there was any loophole in the policy application, it will be detected. This will cause a lot of troubles for your nominees. Prevention is better than cure. So to be on the safer side, opt for life insurance with medical tests.
The author is the CEO of MyInsuranceClub.com, an online insurance price & features comparison portal
For more articles by Deepak Yohannan, please visit MyInsuranceClub.com