Among the different life insurance policies in the market, term insurance policies offer one of the higher coverages possible. Term insurance plans are pure life insurance products designed to ensure your loved ones are protected even when you’re not around anymore.
Term plans are also quite affordable compared to other life insurance plans. To ensure customers purchase the plan easily, insurers like Tata AIA allow customers to purchase the Tata AIA term insurance online. When you buy term insurance online, you learn about the term insurance benefits offered by the plan you have selected. Insurers also provide insurance calculators on their website to help you understand the term life insurance cost.
The cost of your term plan will depend on several factors like the sum assured amount, insurance tenure, riders included, etc. Apart from these factors, your family’s medical history will also impact your term insurance cost.
Impact of Family’s Medical History on Term Life Insurance
Suppose your immediate family members, mainly your parents, suffer from a chronic issue or a terminal illness. In that case, your insurer will consider this a serious factor and include it in the terms and conditions of the term policy. Therefore, your insurer will analyse the illness or ailment listed and sell you the insurance plan for an increased cost.
Given below are a few factors about your family history that can affect your term life insurance cost:
- Family’s longevity: If your parents pass away from a terminal illness, there’s a possibility that you may inherit the illness. Consequently, it may result in low life expectancy for you and higher premiums.
- The environment of the family: The environment you live in or your geographical location can also impact your health. A poor living condition can lead to severe diseases and other health issues. If your insurer learns about such an environment, they may charge a higher premium for the term plan.
- Hereditary issues: Specific issues like heart conditions, diabetes, cancer, etc., can be passed on from one generation to another. Mostly from parents pass on these diseases to their children. If you have a history of hereditary illnesses in your family history, you may have to pay higher premiums for your term policy. This is because your insurer may label you as a high-risk individual.
If you have any such issues in your family medical history, your term insurance coverage may be impacted in a few ways.
Impact Of Family Medical History On Your Life Insurance
The ways in which your family history can impact your term life insurance are:
- Your insurer will deny insurance coverage: If your family medical history indicates a low life expectancy, medical illnesses, etc., then the insurance company can deny you insurance coverage. This is because there is a high chance of you filing an insurance claim soon.
- You have to pay higher rates: Some insurers offer insurance coverage for those individuals with severe medical issues like cancer or diabetes. In these situations, the insurer will offer coverage at a higher premium than normal term insurance plans.
- You will get coverage that won’t cover certain critical issues: For instance, if your medical history shows a specific critical illness, your insurer will agree to provide you coverage for a wide range of issues except for the specific critical illness. This way, you will be covered for all the medical issues except for one specific medical issue.
While the impact of your family’s medical history on your term policy may seem a bit tough, it is always better to provide truthful information to your insurer.
Consequences Of Hiding Medical History From Insurers
The consequences of hiding your medical history from your insurer include:
- Claim rejection: If your insurance company finds that you lied about certain issues regarding your family’s medical history, then you hold the absolute right to reject your claim.
- No death benefit: If the insurer’s investigation into your untimely passing away finds that the death occurred due to undisclosed information, your insurance company can reject the death benefit.
- No coverage for specific issues: If your insurer finds certain pre-existing conditions about you during the policy purchase, they can deny providing coverage for that illness.
Conclusion
Your family’s medical history will impact the coverage you are liable to get through the plan or the cost of your term insurance coverage. While the impact of your family’s medical history may differ based on the issue, it is important that you always provide truthful information and never hide crucial details. If you do not provide the required information accurately, your insurer holds the right to reject your claim or cancel your insurance. Therefore, it is always optimal to check your family’s medical history to get the right policy for yourself.
