The Long Read
Everything you *need to know* is right above this. Scroll down, only if you'd still like to read more (honestly, why?)
Yes, you should. Whether you are undergoing therapy and treatment for your mental health challenges or did it in the past, you must disclose it to your insurer, even if it affects your chances of getting a term plan. Why? To get the best term plan for your needs and ensure a hassle-free claim experience for your nominee.
During the term insurance application process, your insurer may ask you/your doctor for some additional information such as
Nature, severity and time of diagnosis of your mental health condition
Your treatment plan (including medication and hospitalisation) - both past and ongoing
History of hospitalisation
Present condition
Current employment status
History (if at all) of substance abuse and/or suicide attempts
Depending on the information you give, you can expect your insurer to take one of the following decisions on your term insurance application:
Approve it
Reject it
Postpone it
Approve with increased premium (also known as rate-up)
P.S: It will, of course, vary on a case-by-case basis so consult your insurer today to know the exact requirements.
Absolutely, you can as long as you meet the eligibility criteria for buying term insurance:
Your age should be between 18-65* years
You need to have an active income with income proof
You must be an Indian citizen - resident, PIO (Person of Indian Origin), or NRI (Non-Residential Indian)
*varies from insurer to insurer
Additionally, even if you are a homemaker with no active income, you are still eligible to get term insurance, provided you meet the other eligibility criteria. But do remember that you have to disclose your mental health status to your insurer at the time of application. Non-disclosure of any health condition when buying a term plan can result in claim rejection later on.
While your insurer may consider your family health history while deciding if they should offer you a term plan or not, it is very likely that they will prioritise your personal health profile more and then make a decision. For example: Your immediate blood relations may have a history of severe mental health issues (such as anxiety, depression and panic attacks). But if your insurer finds you to be medically stable in your health assessment, chances are that they will still give you a term insurance policy. But that doesn’t mean you don’t reveal your family’s health history to your insurer, both physical and mental. Find out more about how your family health history can affect your term insurance plan application.
Typically, you will need to take the following medical tests to get a term insurance policy:
Urine test
Blood tests including CBC
Lipid profile
Blood pressure
Liver and kidney function
Fasting blood sugar
ECG/TMT/2D Echocardiography
Ultrasonography
Chest X-RAY
HIV
Treadmill test
Any other tests (if the insurer feels the need)
But remember, this is not a final list. Depending on your age, health status as well as the life cover you have requested, your insurer may ask you for some additional medical tests when applying for a term insurance plan.
Depending on the severity of your mental health issues, your insurer may ask you to take additional medical tests. It’s best to check with them at the time of application.
No, you don’t need to. Medical tests that you undergo while applying for a term policy are free of cost.* It is like getting a free health assessment.
*may vary from insurer to insurer
Find out in detail if you have to pay for medical tests when applying for a term insurance plan.
You need to check with your insurer regarding this. Typically your insurer will:
Give you the details of the lab from where you can get the medical tests done
Give you a list of labs and ask you to choose one for undergoing your medical tests
If your insurer/suggested lab offers the facility, you can get your medical tests done at home as well.
Unfortunately, yes. Your term plan application may be rejected (even if you are eligible to get one) because of these factors:
Specific health issues
Age
Hazardous occupation
Dangerous hobbies
Poor lifestyle choices
Income limitations
Past criminal record
Previous application declines
Falsifying information
History of declined applications
See, all the above factors may be used by your insurer to assess the risk involved in giving you a term insurance plan. Depending on that, they may reject your application.
Find out in detail the factors that can result in your term plan application rejection.
Unfortunately, your term insurance application can be rejected on medical grounds. When you apply for term insurance, you will have to reveal:
Your health status
Any pre-existing medical conditions
Lifestyle habits
Family health history
Mental health status
Based on the above information and your medical test reports, your term insurer may reject your application if they believe that insuring you would be risky for them.
If your term plan gets rejected on medical grounds, it may be because of a medical condition that made your insurer think that you were way too risky to insure. Unfortunately, even if you do apply for a term plan with different insurers, it is likely that you’ll be rejected there as well. You should rather focus on improving your health and try to apply for a term plan later.
Find out in detail if your term insurance application can get rejected on medical grounds.
Yes, it can, depending on your health condition but not necessarily always. What’s more important is that you take good care of your mental health. So, don’t worry and focus on your treatment.
See, if you have provided accurate information about your health history at the time of term plan application, you don’t need to worry. Your claims will not be rejected in such a case.
But, if you did not reveal your mental health issues at the time of term plan application, then your insurer may deny your nominees the claim. Understand this - your insurer will need to know everything about your health status, both physical and mental, when assessing your application. Non-disclosure of any health information can result in term insurance claim rejection later on.
You will have to check with your insurer regarding this. See, your term plan may have been postponed not because you were undergoing treatment but maybe because your insurer wants to reconsider your application after your mental health stabilises.
So, focus on your treatment and health and try again.
While it is not necessary to inform your insurer, we still advise you that you should still do it. Why? If you have bought any riders with your term plan, your insurer can check if you are eligible for any rider benefits and then they can help you avail those benefits accordingly. For example, if you have a critical illness rider, informing your insurer about your mental health status can help them give you an advanced payout from your life cover. This advanced payout can be used for the treatment of your health condition.
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