Family medical history is a big factor that majorly impacts insurance premiums due to its risk association. And justifiably because as we climb the further stages of our life, we become more and more susceptible to various health issues. And that is the reason why term insurance for senior citizens comes with a higher premium than standard term insurance plans.
In this article, we shall get into the impact of family medical history on the term insurance premium and share insights into the same.
How Does Family Medical History Impact Your Term Insurance Rate?
Insurance companies determine the financial risk associated with individual life and provide financial support to the family in the event of unfortunate demise, whether it is due to illness, accident injury or disease, either naturally or as a result of an unforeseen accident.
However, most of these risk attributes are uncontrollable, but illness associated with a family history can be an aspect to determine a risk-controlled premium rate, especially when they are in the form of-
- Inherited illness
Inherited illnesses are usually passed down to diseases such as diabetes. If your parents are diabetic and are regularly taking medication, you are more likely to develop the condition due to genetics, which makes prevention a big challenge.
Therefore insurance companies take into account family medical history while deciding premium rates. Other examples of genetic diseases include cardiovascular disease, breast cancer, and prostate cancer.
- Family Life Expectancy
The insurance company takes a close look into the lifespan of your family member to associate the risk they are undertaking. For example, suppose your parents and grandparents have a history of living through their 90s. In that case, you might also live longer, which shall reduce risk considerations for the insurance company. As a result, the premium payable can be a little lower.
How Does the Term Insurance Company Check Your Medical History?
The procedure involves two stages.
- The initial application stage-
In this stage, the insurance company helps you determine which policy best fits your needs.
First, you will be asked to answer some medical history questions, including your family’s medical history. For instance, whether there is a closely related family member who has been diagnosed with a critical illness, such as heart disease, cancer, or diabetes.
Further, you will be asked to provide details about their diagnosis, including the age at which they were diagnosed. In some cases, you may also need to give information if there is a history of other terminal illnesses, such as Alzheimer’s or mental illnesses.
- Second stage-
You need to complete a more thorough application with more detailed questions about your medical history and background. This information shall help determine policy rates.
Note: Once all your medical records and those of your family members have been studied, the insurance company will inform you of the premium rates they can offer on your term life insurance policy.
Conclusion
It is essential to understand that your overall health and your family’s health play an important role in calculating the premium rates for your term life insurance policy. And it is essential to be truthful and transparent about your medical history during the application process to ensure that you receive an accurate policy rate and don’t face any claim settlement issues in the future.
A tip for choosing the best term life insurance is to go with the top brands. For example, choosing Tata AIA term insurance will get you all the features along with expert guidance in selecting the best plans possible for you. And it is true for most of the top brands.
