The monthly survival benefit mentioned is an example of Life Assured opting for Sum Assured as 1Cr under Life Secure with Income plan option. Trade Logo of Canara HSBC Life Insurance Company Limited (formerly known as Canara HSBC Oriental Bank of Commerce Life Insurance Company Ltd) hereinafter referred to as "Insurer" is used under license with Canara Bank and HSBC Group Management Services Limited.ġ. Apprise your life insurer of any permanent change in your health condition at the earliest. If you have already bought the policy without a medical exam, you should consider going through a regular check-up. In case you have declared healthy, and the death occurs due to an illness, the insurer may reject the claim. So, when you bought a policy without the medical exam from an insurer, either you have declared any pre-existing medical condition or that you are perfectly healthy. As the insurer’s promise is only based on the relevant facts you declare in the application form. If you avoid the medical exam and secure a life cover, chances of claim rejection will increase. What if You Buy Life Insurance Without Medical Exam? Just that, their policy will not work if the death happens due to the disease. This also means that even people undergoing treatment for a specific disease can buy a life insurance policy. In the case of pre-existing diseases, the policy will not cover death due to the disease but for all other reasons, except the normally excluded ones. If the medical exam uncovers an illness or you have a medical condition which increases your risk of death, the insurer will propose a new higher-premium. When you apply a new term insurance policy, the premium cost is the average premium cost for a normal healthy life. What if You Have a Pre-existing Health Condition? However, cover and premium modifications are common for people buying in later ages. In the case of life insurance, proposal rejections are rare. Modify the life cover (decrease in case of higher risk).Modify your premium (increase in case of higher risk).In case you have an existing health condition, it only means your life carries more risk and the insurer may: While insurers have already estimated the external risks to your life and accounted for in the premium cost, your health is the only variable. The higher up the risk or magnitude of loss the higher the premium cost for the cover. Even within the range, all individual policies will carry a different risk probability. So, the insurable cases must fall within the range of acceptable risk for the insurer. Similarly, if there are high chances of loss being significantly high, you should probably avoid such an incident. And you can plan to mitigate your losses from a predictable incident. If the probability of an event happening is high, it defeats the unpredictability of insurable incidents. That is why insurance for an accident is possible. Out of the accidents that do happen, chances that the loss will be significant are even lower. Probability of accidents happening is low if we look at per 100,000 vehicles on the road. For example, there are only specific types of risks which an insurance plan will cover - Low probability of the incident and Low probability of high damage cost.Īn example of such events can be road accidents. Life insurance, or any other insurance, is based on the law of probabilities. Effect of Health on Life Insurance Cover: Thus, medical exam forms an inseparable part of the purchase process. In fact, chances are if you are not going for regular health check-up, even you may be unaware of your health conditions.Ī life insurer, who will protect your family from the financial burden caused by your untimely death, has the right to know all the risks to your life internal and external. However, in the case of life insurance, an insurance company is not in a position to investigate the buyer’s life, especially health issues. This rule means the buyer is responsible for the research and collecting all the information he/she needs about the product and service before purchase. Usually, when you go to buy a product from the market, the rule which applies is ‘buyer beware’. A threat to your life, however, can come from external forces like accidents and disasters or internal forces like health. The life insurance policy covers your family financially from the threat of losing your life. However, there are some conditions and considerations to this. Yes, there can be instances where you don’t require undergoing a medical examination for policy issuance. Life insurance is based on the concept of ‘utmost good faith’, meaning both customers and the insurers are transparent about their conditions. Medical exams are an important part of the life insurance purchase process.
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