Medical Tests in Insurance

Medical Tests in Insurance

“Doctors give drugs of which they know little, into bodies of which they know less, for diseases of which they know nothing at all”, said Voltaire.

Insurers are generally in the same position. They know little about the person they insure, his lifestyle, his place in society, his economic capability and least of all his health status.

Yet they are expected to cover risks and pay if there is a claim. This is the reason why insurers use medical tests to find out about your health status. Unfortunately medical tests can only reveal the current position. But insurers can make informed decisions based on your current medical status. This is the reason why medical tests are always pre-policy. No insurer is permitted to conduct a test after you have taken the policy, irrespective of how old you currently are or how bad your health status.

By and large insurers are interested in normal healthy individuals. Yet, if something is abnormal in your test reports, insurers will still accept your case by charging a little extra – provided the abnormality is not obviously life threatening. The trigger to conduct tests is different for health insurers as opposed to life insurers. Health insurers will conduct medical tests if you cross a certain age while buying a new policy: usually 45. The amount of cover has little role to play. Life insurers on the other hand may ask you to undergo tests based on age, size of cover or type of policy, or any combination of these factors. In fact some companies offer a lower premium if you are willing to undergo a medical test!

Medical tests are usually conducted free of cost by insurers and is usually conducted after payment towards first premium is made. They will deduct the cost of tests only if you refuse to consider taking the policy after the insurer has accepted your case. In the case of life insurers, even if the application is declined by them due to adverse health issues, they will not deduct medical costs while refunding your deposit. Some health insurers act differently and may not deduct cost of tests if the application is not accepted. In spite of these niggling issues, our advice to all customers is that it is in your interest to take these tests. You can insist on them providing you a copy of the reports. Further if any adverse reports emerge, and the insurer is willing to insure by charging some extra premium, grab that offer – a time may come when you may become uninsurable due to the adverse impact of your health condition.

Tests vary little across insurers. However premiums do and insurer performance varies widely. Before you choose to buy a policy it is important to make yourself aware of the choices that fit you the best.