Know Everything About Telemedical Check-ups for Term Insurance

The Covid-19 pandemic has completely altered our lifestyles, leading to the normalisation of mask-wearing, sanitisation practices, and work-from-home facilities. In response to government guidelines, companies across various industries have adjusted their policies to prioritise social distancing and raise awareness. Insurance companies have also adapted their rules to align with this changing landscape. As part of this trend, many life insurers are now providing telemedical check-ups, which is a service that this article will delve into, focusing specifically on telemedical check-ups for term insurance.

What is a medical check-up for term insurance?

Obtaining a term insurance plan can serve as a financial safety net for your family in the unfortunate event of your death. If you are no longer around, the insurance benefit provided by the term policy will address various financial obligations, including your children's education, loan repayments, and household expenses.

However, as part of the process of purchasing term insurance, you must undergo a thorough medical check-up specifically designed for term policies. This test is essential to evaluate your overall health condition and assess your risk profile.

The comprehensive medical check-up for term insurance is influenced by multiple factors, including your family's medical history, your age, and the specific coverage you are seeking in your insurance policy. While the exact tests may vary, there are certain fundamental medical examinations that are common insurers:

- Complete blood count

- Kidney function test

- Liver function test

- Lipid profile

- Fasting plasma glucose

- HIV test

- Routine urine test

- Electrocardiogram (ECG)

- Treadmill test

Please note that these tests serve as examples, and the specific tests required may vary depending on the insurance provider and the individual's circumstances.

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Based on the results of the medical test for term insurance, the insurance provider will analyse your health status and calculate the level of risk involved. Using this information, the insurer will create personalised term insurance policy quotes. These quotes will present you with different options for term plans, allowing you to select the variant that offers the maximum benefits at cost-effective premiums.

What is a telemedical check-up for term insurance?

Telemedical check-ups also referred to as telemed or tele-underwriting, involve the evaluation of a policyholder's health by insurance companies using virtual methods like telephone interviews, video calls, or online questionnaires instead of traditional physical medical tests.

Life insurance companies may utilise telemedical check-ups to assess the policyholder's health and ascertain the associated risk of insuring them. During the telemedical check-up, the representative of the insurance company or doctor may ask several health-related questions to the consumer, and he/she is required to disclose details, such as his/her medical history, family medical history of illnesses, pre-existing illnesses, past and present prescriptions, lifestyle habits like smoking, drinking, and use of drugs, physical activity, how often he/she visits their family doctor, etc. This allows insurers to accurately determine the premium for the term insurance policy and make an informed decision regarding policy approval.

In case the consumer refuses to provide certain details or is found providing false information, the insurer can reject the application.

Can NRI consumers use the service to buy term insurance in India?

Since NRIs live across the world and have different financial requirements, the term plan should be based on their specific needs. Most insurers in India offer customised term plans to NRIs, and they are free to pay the policy premiums in Indian Rupee or any other foreign currency specified in the policy document through an NRE, NRO, or FCNR bank account. The term insurance in India costs significantly less compared to developed countries. Furthermore, it is mandatory for life insurance companies in India to cover death occurring at any place if the policy was purchased from India.

Many leading insurers allow their NRI customers to undergo video or telemedical check-ups to buy a term insurance policy. In case the consumer is required to undergo a medical examination, they can do it in their country of residence. The medical reports are sent to India, based on which the insurer makes the final call on policy issuance and the premium.

However, some insurers may require consumers to undergo a medical examination in India, which they have to do on their own. Hence, when choosing an insurer, consumers need to consider this cost.

What are the do's and don'ts for a telemedical check-up?

Here are some suggestions to get ready for the telemedical check-up:

1. Choose a time for the interview that is convenient for you, ensuring you have no other commitments that may distract you during the conversation with the insurance representative/doctor.

2. Make sure you have a stable network connection.

3. Please keep all your medical records easily accessible, as they may be required to provide specific details during the check-up.

Do's during the telemedical check-up:

1. Be honest in disclosing your medical history.

2. If you come across any questions or terms that you don't fully understand, don't hesitate to get them clarified.

3. Provide clear responses and avoid ambiguity.

Don'ts during the telemedical check-up:

1. Do not hide or provide any false information, as it may lead to application rejection or claim rejection in the future.

2. Be patient and do not haste to finish up the call.

To conclude:

Telemedical check-ups have streamlined the underwriting procedure for term insurance policies. However, it is important to verify if the insurance company permits telemedical check-ups for the specific term plan you intend to purchase. If this option is available, you can take advantage of it, but make sure you disclose all the information honestly. It is crucial to provide truthful responses during the check-up so that your claim does not get rejected and the insurance coverage comes to your rescue when needed.

KETKI JADHAV is a Content Writer at PersonalFN since August 2021. She is an MBA (Finance) and has over seven years of experience in Retail Banking. Ketki specialises in covering articles around banking, insurance, personal finance, and mutual funds and has been doing it for over three years now.

Disclaimer: Investment in securities market are subject to market risks, read all the related documents carefully before investing.

Disclaimer: This article is for information purposes only and is not meant to influence your investment decisions. It should not be treated as a mutual fund recommendation or advice to make an investment decision.