What is a Proposal Form in Health Insurance?

One of the first and most important steps when it comes to buying a health insurance policy is filling out the proposal form. It is the official application you fill out when buying a health insurance policy. Think of it as the foundation of your policy - it sets the stage for how your coverage will work, what it will cost, and what it will include.

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Proposal Form in Health Insurance

Proposal Form in health insurance, as mentioned above, is an application or form that you will fill out while buying a health insurance policy. It collects detailed information about the policyholder like name, age, gender, and medical history, and also asks for lifestyle information which helps the insurance company evaluate the risks, calculate your premium, and decide the terms of your coverage. This form acts as the basis of your insurance contract so it is important to fill out the details accurately and truthfully. Spending a few extra minutes here can help you save a lot in the future.

Importance of a Proposal Form

The base of the insurance contract: The policy issued is almost entirely based on the details you provide in the application form.
Determines your premium: It helps insurance companies assess your risk level and sets the premium accordingly.
Impacts your claim approval: If there’s a mismatch in the details you provided and your medical history, the chances of your claim getting rejected become higher.
Helps apply terms & conditions: It allows the insurance company to set waiting periods, and exclusions, or request medical tests if needed.

Contents of a Proposal Form

A typical health insurance proposal form asks for the following:

Personal information

Full name, age, date of birth
Contact information like your phone number, address, and email address
Nominee information or name of the person who gets the benefits of the policy in case of your demise.

Health history

Existing illnesses like diabetes, heart disease, asthma, etc.
Previous surgeries or hospitalisations
Current medications or treatments
Family medical history like hereditary diseases

Lifestyle details

Tobacco or alcohol consumption
Occupation or stress level
Physical activities or exercise habits

Policy details

Type of policy you are applying for, whether it’s individual or family floater
The sum insured
Add-ons like maternity cover, OPD, critical illness, etc.

Common Mistakes to Avoid

You need to be very careful while filling out a proposal form because while it may seem like a simple task, even the smallest mistake can cause you major issues in the future. To avoid that here are some common mistakes to watch out for:

Hiding pre-existing conditions

Not disclosing any pre-existing medical conditions or being dishonest with the details in the form just to get a lower premium can lead to your claim being rejected in the future.

Skipping lifestyle details

Insurance companies need to factor in your lifestyle habits like drinking alcohol or smoking to evaluate health risks.

Filling it in a rush

Take your time to fill out this form because even the smallest mistake can be the deciding factor in the insurer approving your application for the policy.

Not reviewing before signing

Always double-check the details you have filled out before submission and be sure to ask your insurance provider if you have any doubts.

What Happens After Submission?

Medical tests: Once the proposal form is submitted, medical tests (if required) may be scheduled based on your age, health, and the sum insured.
Evaluation: The insurance company will evaluate or review your form and health details before approving your policy.
Policy document: If approved, you receive the policy document from the insurance company and the coverage begins as per the terms mentioned in your health insurance policy.

Conclusion

While a proposal form might look like any other document or just a routine formality, it is one of the most important documents you may fill in your entire life. It helps your insurance company offer you a policy that best suits your needs, and avoid any surprises at the time of claims. Be sure to take your time to fill it out correctly and truthfully, cross-check all the details before submission, and ask your insurance provider if you are confused about anything and everything related to the policy.

Frequently Asked Questions

Can I edit the proposal form after it has been submitted?

Yes. You can make changes to the proposal form through the process of endorsement. You can make this endorsement request by reaching out to your health insurance provider.

Who should fill out the proposal form?

The person buying the policy must fill and sign the form. If it’s a family floater plan, you need to fill in the details of each member covered. Make sure to check all the details before signing and submitting it.

Can you buy a policy without filing out this form?

No, you cannot. It is the first step in buying a health insurance policy and hence, it is the most important one. There is no policy without a proposal form.

Do I need to fill a new proposal form to renew a policy?

Usually not. In cases of renewals, you just need to confirm if there are any changes to your health or personal details. A fresh form is only required when you buy a new policy.

Do I need to submit medical reports with the proposal form?

Not always. But, if your age, health history, or the sum insured requires it, then the insurance company may ask for tests after reviewing your form.

Written by Roocha Kanade

2.5K Linkedin Followers

Reviewed by Dr. Harshita Dahiya

Health Insurance content enthusiast who turns complex topics into easy, binge-worthy reads—fueled by SEO, creativity, and way too much chai! Loves juggling multiple projects, cracking impossible deadlines, and sprinkling humor into the mix. When not geeking out over digital trends, you'll find her lurking on Quora and Reddit, planning the next getaway, or passionately decoding all things health and insurance!