Effects of canceling life insurance post medical test

[vishwas02]

I am a 23-yrs old young male and recently started working this year. I applied for Bajaj E-touch term plan for 5 years and the premium was around 30-35k. After the medical test was done as I am overweight, my premium was increased by 21k (~70%). The insurance agent suggests that I should go ahead because my policy in approved in such extreme case if I cancel the policy now it will affect my future insurance applications as it will be recorded in my history just like default in CIBIL score in case of credit. I am confused what should I do here as the sole reason of buying a term plan at such early age is to get low premiums.

Edit - Also forgot to mention the test reports were completely normal. The agent said there a potential risk of diabetes in obese people, so insurance keep that also in account while increasing the premium.

 

[shaistha Anjum]

I am a 23-yrs old young male and recently started working this year. I applied for Bajaj E-touch term plan for 5 years and the premium was around 30-35k. After the medical test was done as I am overweight, my premium was increased by 21k (~70%). The insurance agent suggests that I should go ahead because my policy in approved in such extreme case if I cancel the policy now it will affect my future insurance applications as it will be recorded in my history just like default in CIBIL score in case of credit. I am confused what should I do here as the sole reason of buying a term plan at such early age is to get low premiums.

Edit - Also forgot to mention the test reports were completely normal. The agent said there a potential risk of diabetes in obese people, so insurance keep that also in account while increasing the premium.

It's understandable to feel unsure about such a significant increase in premiums. While the agent's advice is worth considering, you should also weigh the financial impact of the increased premium against the benefits of having the insurance. If you're uncomfortable with the new premium, you could explore other insurance options or ask for further clarification from the insurance company about the reasons for the increase. Ultimately, it's important to make a decision that aligns with your current financial situation and long-term goals.

 

[shaistha Anjum]

Canceling life insurance after undergoing a medical test can have various consequences. If you're in good health, you might be able to secure a new policy without much difficulty, but premiums could be higher due to age or changes in health. If your health has declined since the test, obtaining new coverage might be challenging or expensive. Additionally, canceling a policy could mean losing any cash value or surrender value built up over time, depending on the type of policy. Always carefully consider the implications before canceling life insurance.

 

[Sailesh Ivaturi]

Brother, my father is an lic agent with more than 30 years of exp, he said there is nothing as credit score in lic. Its doesn't affect your future policy approvals in lic, can't say anything about Bajaj though. I usually, don't prefer getting an insurance from a private company for one of many such reasons.

 

[amitaries17]

I am a 23-yrs old young male and recently started working this year. I applied for Bajaj E-touch term plan for 5 years and the premium was around 30-35k. After the medical test was done as I am overweight, my premium was increased by 21k (~70%). The insurance agent suggests that I should go ahead because my policy in approved in such extreme case if I cancel the policy now it will affect my future insurance applications as it will be recorded in my history just like default in CIBIL score in case of credit. I am confused what should I do here as the sole reason of buying a term plan at such early age is to get low premiums.

Edit - Also forgot to mention the test reports were completely normal. The agent said there a potential risk of diabetes in obese people, so insurance keep that also in account while increasing the premium.

The life risk assessment is based on several factors including health, habits, family history, etc. Wherever you apply policy, the company will. Check you BMI (Body mass index) and charge extra premium but again it depends on type of products and company.
Further more, you will be always asked for reason for rejected policy in every company coz it will be captured in IIB (Insurance Information Bureau).

 

[Sailesh Ivaturi]

Just a word of caution, Some malicious threat actors call policyholder impersonating IIB and scrape personal identification information (PII) and Sensitive PII like medical info. Please ensure details about any such insurance committee/organisation related concerns on https://irdai.gov.in/