Here's why you need a Medical Test Before buying Life Insurance in UAE

In order to attract more and more potential customers and maximize sales insurance providers deal with medical clauses differently. There are no standard criteria based on which insurance providers decide the premium and coverage for life insurance in UAE.

Some insurance providers do not expect customers to undergo any medical investigation for customers below a certain age bracket, making it even more convenient for customers to get themselves insured. Contrary, to the first scenario some insurance providers offer discounts in the monthly premium if the customers undergo medical investigation. Based on the type of insurance plan you purchase, you might have to undergo medical tests.

Benefits of undergoing medical tests when buying life insurance in UAE

The primary objective of insurance providers behind these medical tests and investigations is to document the status of the applicant’s health at the time of purchase. Furthermore, medical reports help insurance advisors to analyze the health condition of the applicant and thereby suggest tailored plans to meet all their requirements at the lowest cost. Very often standard life insurance plans in UAE aren’t sufficient to fulfill the needs of the insured and their family therefore customization helps customers to a great extent.

Here’s a rundown on various reasons why life insurance in UAE requires medical investigations and test:

Reduces the probability of claim rejection

Even if you don’t undergo medical examination while buying life insurance in UAE you will still have to make a mandatory declaration of your medical status in the application form of your insurance plan. Keeping your health issue hidden from your insurance provider can land you into great trouble while making the claim. Approximately 3% of the total claims made by policyholders are rejected due to hiding medical complications from providers.

Reduction in premium

Insurance providers assess and analyze the applicant’s medical and financial status determines the premium for the life insurance plan in the UAE. Most of the insurance sector work on risk perception, keeping the risk factor in mind it is necessary for insurance providers to assess the medical condition. Once the insurance provider is done with the applicant’s assessment they can actually decide how much would be the premium for their desired plan. Based on the applicant’s health the price of premium increases or decreases i.e. if the applicant is healthy the premium will be low, on the other hand, if the applicant is suffering from any ailments or is prone to diseases then the premium will be higher.

Sum Assured

Another crucial factor that comes into the picture is the sum assured. It is the amount that is paid to the nominees in case of the demise of the policyholder. Medical investigations and tests help providers to determine the various risk factors associated with the applicant’s health and determine the cover amount or sum assured for the given plan. Insurance providers tend to offer higher sum assured to healthy applicants and lower sum assured to applicants who are suffering from health issues or are prone to health issues.

Low coverage

If you are buying a life insurance plan without undergoing necessary medical examinations then the providers are bound to offer low coverage in comparison to applicants who have undergone medical examinations. The main reason behind offering lower coverage to such applicants is that insurance companies have to compensate for unknown medical issues that have not been revealed to the insurance provider.  

Conclusion

Most of us tend to be extra cautious when it comes to health and take proper care of ourselves to ensure a healthy and long life. Being healthy itself is a huge reward but it offers financial rewards to customers as well. Healthier applicants are offered lower premiums and higher coverage which can only be achieved if you’ve undergone necessary medical examinations before applying for life insurance in UAE. 

After this quick read, we hope that you’ve got a sound understanding of the importance of medical tests and examinations while buying life insurance in UAE. Although the process might appear tedious and difficult, it helps customers in the long run. For all of us, the primary objective of buying life insurance in UAE is to leave our families and loved ones with enough money that don’t have to struggle for their needs and medical examinations help policyholders achieve their objective with ease.