Term insurance plans are quite optimal choices for protecting your family in your absence. They offer one of the highest coverages at an affordable cost. With suitable term insurance for your family, you will not have to worry about their financial stability.
Purchasing term plans have also become quite easy these days. Insurers like Tata AIA offer term insurance plan calculators on their websites to help customers calculate the Tata AIA term plan premium. While you must check your premiums before purchasing the policy, you must get a medical report to buy a policy.
While getting a medical report can help you purchase the term insurance plan, you must check your medical report carefully before providing it to your insurer. This is because your medical report can hold certain mistakes which may impact your term insurance coverage. The mistakes in your term insurance plan can occur for various reasons.
Reasons for Mistakes in Your Medical Report for a Term Insurance Plan
Here are a few reasons for mistakes in your medical examination report for term insurance:
- Communication gap: It is among the most common reasons for medical report mistakes. The mistake can occur because of written or verbal communication mistakes between lab technicians, patients, nurses or doctors.
- Human errors: Human errors occur if the standard protocols aren’t followed during medical examinations. Common human errors include not carrying the documentation properly, incorrectly labelling certain files, etc. These errors mostly occur because of distracted attention, improper training and low experience.
- Inadequate information: You must offer the correct information about your issues. This is because not disclosing all the information can impact your term insurance coverage.
- Knowledge transfer: The medical team that manages the medical test for term insurance holders may not have the proper training or the correct amount of information or be new to the team. Such issues can lead to crucial mistakes in medical documentation. In addition, it may affect your chances of purchasing a suitable term insurance plan.
- Patient-based issues: The patient may be wrongly identified, have wrong preliminary patient analysis, failure to get consent, or lack awareness about the medical examination. These issues can lead to false information being included in the medical report.
- Poor procedures or policies: Certain hospitals where medical examinations are conducted may follow poor documentation policies and use expired medical procedures. These issues can lead to several wrong medical examination results in your report.
- Technical issues: The medical examination involves using medical equipment for carrying out certain tests. However, sometimes the medical equipment used for the tests may not show accurate results because of different issues like software glitches, electronic issues or calibration problems. Because of these issues, your medical records will reflect inaccurate information regarding your medical status.
- An inadequate number of medical professionals: Most times, the staff capacity of a medical team does not match with the high number of patients that are coming to the team. The medical team may commit a few mistakes if a large group of patients are involved while building your medical report for insurance.
Is Medical Report Compulsory for Term Insurance?
Yes, getting a medical test is crucial for purchasing term life insurance. The medical report will help your insurer understand your current health condition before offering you the term insurance plan.
Here are a few factors that are impacted by the medical report for the term insurance:
- Insurance premiums: Insurance companies need to assess your medical conditions to understand their risk. If you have a high-risk medical issue, you may be levied a higher premium amount and vice versa.
- Coverage: If you had bought a term plan without a medical check-up, you are bound to get low coverage from your insurer. However, the insurer will not compensate you for the medical issues you hid from them.
- Sum assured: The lump-sum amount you are liable to get through the term insurance will increase if you are healthy and are not facing any serious issues.
- Claim rejection: In many cases, your insurer can reject the death benefit if it’s proved that the policyholder’s death is because of a pre-existing medical condition.
Getting the medical report will help you smoothen your term insurance purchase. However, you must check your medical report before providing it to the insurer, as it can include a few mistakes, which can impact your coverage in the future. These mistakes can occur because of several reasons like technical issues, inadequate information, etc.