In India, term insurance is often the first financial product people consider when thinking about securing their family’s future. It promises a large cover at a relatively low cost, making it a straightforward way to provide financial security. Yet one question always puzzles buyers: why do some plans insist on medical tests while others are issued without them?
The answer lies in how insurers balance convenience with risk. Insurance is essentially a contract of trust. The company commits to protecting your family’s financial future, but before taking that responsibility, it wants to understand how healthy you are and how long you are expected to live. Sometimes this requires detailed medicals, while at other times, a simple declaration is considered enough.
Why Medicals Matter in the First Place
Medical tests give insurers a clear picture of your health. They reveal conditions that may not be obvious and help the company estimate how risky it is to insure you. For example, two individuals of the same age may apply for identical coverage. One is healthy, while the other has lifestyle diseases. Without tests, the insurer would have no way of telling them apart, yet both would be charged the same premium. Medicals ensure that policies are priced fairly and that claims are less likely to be disputed later.
When Insurers Skip the Tests
Even though medicals are important, there are scenarios where insurers allow customers to buy cover without them. This usually happens when the financial risk for the insurer is relatively low.
- Modest Coverage: Term insurance plans with smaller sums assured, often up to ₹20–25 lakh, may not require tests. The limited liability makes it easier for insurers to rely on self-declared health information.
- Younger Applicants: People in their 20s or early 30s are less likely to carry chronic health issues. For them, companies sometimes offer no-medical policies as an incentive to start early.
- Pre-Packaged Group Plans: When insurance is offered through an employer or association, risk is spread across many people. In such cases, individuals are often covered without medicals.
- Digital Fast-Track Products: With the rise of online policies, some insurers design products that prioritise instant issuance. These skip medicals to simplify the buying journey, though the cover is usually capped. You can simply use term insurance calculator to know the premium amount and buy accordingly.
Why Some Plans Insist on Medicals
On the other side, certain conditions make medicals non-negotiable.
- Large Cover Amounts: A crore or more in protection is not a small promise. To take on such a commitment, insurers need strong proof of your health condition.
- Higher Age Brackets: By the time applicants reach their 40s or 50s, the probability of illnesses increases. Medicals become critical for insurers to assess the extent of risk.
- Declared Health Issues: If you state in your application that you have diabetes, hypertension or heart-related concerns, medical checks are necessary to evaluate the severity.
- Underwriting Rules: Every insurer has its own matrix combining age, cover size and personal history. At certain thresholds, medicals are mandatory regardless of convenience.
The Trade-Off for Buyers
From a customer’s point of view, skipping medicals can feel easier. There is no need to visit a lab, no waiting for reports and approvals happen quickly. However, this convenience often comes with conditions. Premiums are usually higher, coverage amounts are lower and there is always the risk that non-disclosure could lead to claim rejection later.
Undergoing medicals, on the other hand, may require effort but strengthens your position. Once the insurer has your health records and approves the cover, your family’s claim becomes more secure. Premiums are also more accurately priced, which can save you money over the long run.
How to Decide Between the Two
When faced with this choice, think about your long-term needs. If you want only basic protection for a short period, a no-medical plan may be sufficient. But if your family’s lifestyle, debts or children’s education depend on you, larger coverage backed by medicals is more reliable.
Age and health also play a role. A young and healthy professional might be able to secure decent cover without tests. Someone in their mid-40s with a history of lifestyle conditions would do better with a medically underwritten plan, as it leaves less scope for disputes.
What It Means for Policyholders
The difference between plans with medicals and those without is not about better or worse. It is about suitability. Insurance companies design both types to meet the needs of different customer groups. Your responsibility is to align your choice with your financial goals.
- If speed and ease are priorities, no-medical plans are attractive.
- If certainty and long-term protection matter more, medical-backed policies are worth the extra step.
Whichever route you take, honesty in health declarations is non-negotiable.
Conclusion
The reason some term insurance plans require medicals while others do not is simple: it depends on the level of risk an insurer is willing to take and the level of protection you require. Medicals build trust and provide stronger guarantees, while no-medical plans trade that assurance for convenience. As a policyholder, choosing wisely means striking the right balance. A plan should not only fit your comfort today but also stand strong for your family when it matters most.
