How Important is it for a Diabetic Person to Have a Term Insurance Plan?

Term insurance is a pure protection plan that can be purchased at low premium rates. A term insurance plan for diabetic people offers protection to those who are suffering from diabetes. By purchasing this term insurance plan, one can provide financial protection to his/her family in unfortunate circumstances like death. Let’s understand the importance of a term plan for a diabetic person:

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Term Insurance For Diabetes In India – An Overview 

India is developing as the diabetes capital with approximately 77 million diabetic patients, standing as the second-highest country in the world. This means one in every 6th individual having diabetes is an Indian. The increasing rate of diabetics is mainly due to modern lifestyle that includes unhealthy diet plans and inactive lifestyle choices.

The rise of diabetes in India has been a matter of concern for most Indian families. The families of those who are suffering from diabetic conditions may face financial damage in the future. And to lessen the financial risk due to any unwanted circumstances due to diabetes, availing of term insurance is an important investment tool for Indian families. If you are suffering from critical illness or diabetes and want to ensure your family’s financial requirements when you will not be around, buying a term insurance plan is a smart decision. 

These term insurance plans offer a lump sum amount as a death benefit in case of an unfortunate demise of the policyholder. However, these diabetic term insurance plans are far more economical than Whole Life Insurance Plans. 

Importance of Term Insurance Plan For A Diabetic Patient

Term Insurance is the safest and the purest kind of life insurance. Its major benefit is that it offers a high sum assured amount to the policyholders at low premiums. However, a diabetic patient may wonder whether they are eligible for purchasing term insurance or not, and if yes, they are eligible, then is it possible to get rejected based on the medical ground?

You can purchase a term plan as a diabetic patient at pocket-friendly rates after fulfilling certain conditions. Diabetes is often not treated as a dire illness, but this condition can lead to future illness. Upon getting diagnosed with a critical illness, the policyholder or the beneficiary can get a lump-sum amount that can be used for the medical treatments.

Key Points For Diabetic Patient When Buying Term Insurance 

Here are a few points for a diabetic person to take care of when purchasing a term insurance plan:

  1. Age of diagnosis of diabetes 

    The age at which one is diagnosed with diabetes plays a major role in the underwriting process of the insurance provider. A diagnosis performed before the age of 40 is considered to be an early diagnosis. If a person has been diagnosed with diabetes at an early age, then he/she poses a higher risk to the insurance company. So he/she may have to pay a higher premium for the term insurance plan for diabetic patients. Whereas, if you have been diagnosed at later ages with diabetes and do not have any other significant health issues the risk of disease is lower, thus the premiums rates will be lower. 

  2. Type of Diabetes

    Patients with Type2 or non-insulin diabetes mellitus are likely to receive inexpensive term insurance premium rates as compared to those suffering from type-1 or insulin-dependent diabetes mellitus. This is because the former is usually an age-related disease that can be controlled using oral medicines and insulin. On the other hand, strict supervision is required for Type 1 diabetic patients. 

  3. Role of blood sugar level in a term insurance plan 

    The severity of diabetes illness is analyzed by your A1C level. - A1C level of 7 indicates the ideal one, A1c level <7 indicates that the diabetic condition is under control, and A1c level >7 is considered high. The insurance companies consider this factor while deciding the premium of the term insurance policy. If the A1C level of a person is less than 7 and he/she does not have any other health issues, then the insurer may provide him/her a term plan at a standard premium rate. On the other hand, a person with a higher A1C level may have to pay higher premiums. 

  4. Health issues other than diabetes is a concern 

    If the person suffering from diabetes, is obese, has uncontrolled levels of blood sugar, heart condition, and smoking habit, have a higher chance of being rejected by the insurers or companies charge higher premium rates because they are at a greater risk of death. 

  5. Pre policy medical screening 

    Before proceeding with the policy purchasing process, the insurer may ask the applicants to undergo a pre-policy medical check-up. This medical screening will usually verify your current health condition, risk factors till present, age, and other risks for future illnesses. The insurer will verify these factors and will decide whether to proceed with the application or not.

Will I Be Eligible For Term Insurance In India If I Am Diabetic? 

The eligibility criteria for term insurance for diabetic patients may differ from one insurer to another. In most cases, the person with diabetes who applies for term insurance usually deals with some health check-ups and medical tests that help in the verification of the policyholder’s current health condition. 

If the patient’s diabetes is under control for a minimum of 6 months, then purchasing term insurance is the safest option. Besides this, patients who respond well to the treatments for curing diabetes will also have a high chance of being offered the Term Insurance Plan. Following are some of the standard eligibility criteria for a diabetes patient for purchasing a Term Insurance Plan:

  • Type of diabetes 
  • Age when diabetes is first diagnosed 
  • Complete health records and family medical history 
  • A diabetes patient with an A1c level up to 8.5 can apply for Term Insurance Plans.

*However, these criteria are subjected to change.

Why Diabetic Person Needs Term Insurance?  

If your diabetes is under control by making comparatively better lifestyle choices, purchasing Term Insurance will not be a problem. However, there are specific reasons for buying a term plan that you must know before submitting your application. Following are the reasons why a diabetic person should buy a Term Insurance Plan:

  • Financial Coverage: Even though diabetes is a manageable disease, but the risk of going through unfortunate circumstances is still higher in the future. Therefore, you should buy a term insurance plan as a diabetic patient to secure and protect your family’s financial requirements in your absence. 
  • Tax Benefits: Section 80C of the Income Tax Act,1961 allows you to avail of tax benefits of the maximum of Rs 1.5 lakh for a particular financial year. This tax benefit is eligible on Term Insurance Plans, and it also involves the Term Plans for diabetics. Therefore, besides securing your family's needs in your absence, additional tax benefits are a significant reason for purchasing a Term Insurance Plan. 

(*Tax benefits are subject to change as per the prevailing tax laws. Standard T&C apply)

  • Critical Illness Rider: Term Insurance Plans offer you a rider benefit of critical illness enhances the coverages of your policy by paying a minimal amount of premium. However, in the Indian insurance market, diabetes is not treated as a critical illness. But diabetes can lead to several secondary illnesses that can be treated as critical and dire illnesses. So, purchasing a suitable Term Insurance with a critical illness rider is a good idea for people with diabetes.
  • Cost-effective: Term Insurance Plans purchased from a reliable and efficient insurer provide higher coverage at lower premium rates. Life Insurance Plans like Endowment Plans and ULIPs are comparatively more expensive than Term Insurance Plans. So, cost-effectiveness is another reason you should purchase a Term Insurance Plan if you are a diabetes patient.

How Can I Find A Right Term Insurance Plan? 

  • Compare the term plans available in the market. 
  • Choose the plan that suits your pocket. 
  • Later age diagnosis of diabetes results in lower premium charges 
  • Choose a plan with comprehensive coverage 
  • Keep track of your health 

Premiums For Term Insurance For Diabetics

Diabetes is not treated as a critical and dire illness like other diseases such as cancer, stroke, or kidney failure. But being a patient with diabetes still has some risk factors. Therefore, the insurance provider will scrutinize these risk factors. Then, they will offer the insurance depending upon the risk rate they will be undertaking if they offer diabetic term insurance. 

These risk factors often affect the premium charges, and diabetics tend to pay more premium charges as compared to healthy individuals. For instance, Type 2 diabetes patients are more likely to pay fewer premium charges than Type 1 diabetes patients. However, for one who is maintaining his/her health and keeping the level of disease in control, the premium cost will be lower for them. 

Final Word! 

Term insurance plans are essential for diabetics these days, as the risk of diabetes is increasing day by day and term plans offer protection to your family. They provide financial protection and life cover that might help you in paying your expenses for the diabetes treatment or will help your family in your absence. Term plans are pocket-friendly as they provide high cover at low premium rates.

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