When you buy a term insurance policy, the insurance companies consider several factors to determine the premium amount. One such critical factor is the family’s medical history. Read on to know more about how it affects your premium.
When you buy a term insurance policy, just like you would want to know everything about the plan, the insurance companies too would want to know about you. Right from your age, profession, past medical records, family’s medical history, etc. You must provide all these details in the application form. All these factors play a critical role in determining your eligibility and the insurance premium amount.
But, if you are wondering why is the family’s medical history so critical? You must know that the premium you pay directly depends on your medical history. Let us understand more about it in detail.
Why does the family medical history affect the term insurance policy?
One of the important reasons why the insurance companies ask you about the family’s medical history is that different types of health conditions like diabetes, cancer, heart issues are hereditary. This means, if your parents are or were diagnosed with any such conditions, chances are high you would be affected by it in the future. For an insurance company, this literally translates to higher-risk and to compensate for the risk covered they increase the term life insurance premium amount.
What information do the insurance companies ask for?
If there is any hereditary condition running the family, the insurer may ask you about the number of family members affected by the condition. They would also ask you about the age at which the condition was detected. In addition, the insurer may request you to undergo a medical test to ensure that you are healthy and whether you have any underlying medical condition. If only a single member of the family were affected by any hereditary issues, it generally has minimal or no impact on your term life insurance plan.
What if a certain medical condition runs through all the family members?
Many people have this misconception that they cannot purchase term insurance if their family has a history of serious disease. However, the fact is, you can purchase term insurance irrespective of the family medical condition. The insurance companies rarely reject the term insurance application due to family medical history. The only difference in such conditions is that you may need to pay a higher premium. This is because the medical history may affect your life expectancy.
Family History is not a major concern for you
While your family’s medical history is vital for the insurance companies, you can be assured that your application and the approval process will remain the same as someone who has no serious family history. Apart from paying a higher premium, the rest of the terms and conditions of the policy will remain the same as others.
If you have any concerns regarding the family’s medical history, you can consult your insurance advisor or speak to the insurance company’s representative and know about their policy. Make sure that you do your due diligence in choosing the right term insurance plan so that you can provide maximum security to your family when you are not around to protect them.
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