Term Insurance Plans for Diabetics in India: An Overview
The number of diabetes cases in India is rising day by day, and almost one in six persons has diabetes. Apart from the treatment expenses, the other health complicacy that may arise due to diabetes is also a huge concern. When a regular health insurance policy comes in handy in covering the treatment expenses, by opting for a term insurance policy, the future of the family can be rest-assured.
A term insurance policy offers death benefits to the insured’s family. So, availing of the best term insurance policy for a person with diabetes is necessary to protect the financial future of the family in case of a sudden demise of the life assured.
So, to answer the above question- Yes, a diabetic can avail term insurance!
What is Term Insurance for Diabetes?
The question is, what exactly is the Term insurance plan for people with diabetes? Term insurance plan for people with diabetes will provide life coverage where in case of the insured's death, the death benefits will be offered to the nominee.
The term insurance policy for diabetics is highly recommended for one suffering from diabetes as it offers insurance coverage right from the first day of the insurance. Unlike the other insurance policies, there is no waiting period to serve.
Reasons Why a Person with Diabetes Needs Term Insurance
The primary reasons that the diabetics need the term insurance plan are listed below:
- Life Insurance Coverage: The diabetic person has a high risk of life with less life expectancy. With the life coverage option, it will be the best option for the insured who is a diabetic.
- Choice of Critical Illness Rider: Most insurance companies offer critical illness riders on term insurance plans. A diabetic person is highly prone to other diseases, so having the critical illness rider and the term insurance will benefit the insured in a better way. But some of these term plans with the critical illness rider will come with additional costs.
- Tax Benefit: The policyholders can avail the tax under section 80C of the Income Tax Act, 1961, but this benefit is available for a maximum of Rs 1.5 lakh per year. (*Tax benefits are subject change as per the prevailing tax laws. Standard T&C apply))
- Affordable Policy: A term insurance plan for people with diabetes is affordable as compared to the other life insurance products.
How to Find a Reasonable Term Insurance Plan for Diabetics in India?
One must check some criteria before buying/ finding a reasonable term insurance plan for the diabetics. The criteria are listed below:
- Comparing the Term Policies: The person needs to compare the term plans in the market before buying one. Many insurance companies come up with different term insurance plans for people with diabetes with different criteria. The one who is availing of such a plan needs to compare every feature and premiums and opt for the one which is suitable for them.
- Choose the Affordable Plan: Most of the insurance companies are selling term insurance plans for people with diabetes that are a bit costlier, which depends on the insured's health condition. There are many best affordable term plans for diabetics available in the market with reasonable sums assured. The person must need to go for the term policy, which is affordable.
- Age Factor: The age factor plays a significant role in getting a reasonable term plan for diabetics in India. The premium costs will be high when the insured is diagnosed with diabetes at later age, i.e., after 40 years, as the risk-appetite is more or vice versa.
- Choose a Plan with Extensive Coverage: One needs to avail of the plan that offers good coverage. Always look for a plan with extensive coverage and affordable premiums.
- Check the ideal coverage online and offline: Before buying the term plan for people with diabetes, one can check online or offline. One can visit the insurance company’s website, compare the existing plan options and buy. If not one can also visit a branch office to enquire about various plans.
- Keep a Constant Eye on Health: To get a reasonable term plan for diabetics, individuals need to keep a good health condition. Insurers always look for this aspect. The better is one’s health, greater will be the chances of getting insurance.
- Policy Tenure: One must look for the policy tenure while buying term insurance. It is good foe availing a policy with higher tenure to remain covered.
How to be Eligible for Buying Term Insurance for Diabetes in India?
Before approving the policy to the insured, the insurance company will look into essential criteria, but these criteria vary from company to company. The general criteria that the insurer will look into stated below:
- The type of diabetes that the person is suffering from
- Age when the person is first diagnosed with diabetes
- Compete for health profile
- Any complications from the diabetes
- One’s response to the diabetic treatment
- The course of the disease
- A1C level
- How often that the insured is visiting the doctor
- How the insured maintains his/her health
- Degree of the control from past 6 to 12 months (estimated by medical records, height, weight, etc.)
- The type of treatment undergoing
- Family's medical history
- Whether he is having any harmful health habits or addictions
Premiums for Term Insurance Plans for Diabetics in India
The premium costs for diabetics will be generally high when compared to the persons without diabetes. Generally, the insurance companies will calculate the premium costs based on the risk level. These premium costs will vary from company to company. If the insured is suffering from diabetes, which may result in terminal diseases, then the premium will be high. Also, for one who is maintaining his/her health and keeping the level of disease controlled, the premium costs will be less.
It is a myth that a person with Diabetes can’t opt for term insurance. With advancement in insurance segment, many insurance companies have come up with different features, thus, having a term insurance for diabetics is not a big deal. Just be transparent with the insurer and go ahead!