Diabetes is a chronic disease that can be evident in an individual based on elevated blood glucose levels. It can lead to severe damage to the critical organs of the body. Therefore, it is essential to keep the blood glucose levels under control. However, considering hereditary reasons and changing lifestyle conditions, getting affected due to diabetes has become very common, even for younger individuals.
In certain cases, diabetic patients face difficulty in their day-to-day activities. They also have to face some monetary hurdles, not just in terms of treatment and medicine. Diabetes patients in India may also have to pay an extra premium if they wish to buy a term life insurance policy.
Here is a detail about everything related to term insurance for a person with diabetes.
What Is Term Insurance For A Person With Diabetes?
A term insurance plan is a pure life cover that is affordable, offers a higher sum assured, and is highly flexible. It offers a simple and easy-to-understand life insurance against the premium paid. If the policyholder dies, the family gets the sum assured. There is no survival benefit associated with a term plan.
The policyholders can customise the policy by using flexible features such as choosing the premium payment method, payout options, etc.
Term insurance for diabetics is a life insurance plan that provides a financial death benefit to the family of the person with diabetes in the event of their unexpected demise during the policy term.
Term insurance for a person with diabetes is important. It can extend the required financial help to the policyholders and their families when they are in extreme need of it. The life cover and the premium for such term insurance plans are based on the specific health condition of the individual policyholders.
Importance Of Term Insurance For A Person With Diabetes
Insurance for diabetics patients is considered very important, considering the uncertain medical conditions that are bound to occur and that can affect the family of the life insured to a great extent.
Here are a few reasons why getting diabetes insurance coverage is important.
Family's financial stability - Term insurance policy can be designated to provide a lump sum financial benefit to the family of the person with diabetes in the event of their absence. It can serve as financial protection, especially if the policyholder is the sole earning member and can help reduce the financial burden in the event of their unexpected death.
Add-on riders# - A term life insurance policy provides a wide range of add-on riders#. It can enhance diabetes insurance coverage based on the occurrence of a specific scenario. For instance, if the policyholder purchases the add-on rider# for the critical illness benefit, the rider# will provide an additional fund if diagnosed with a critical illness during the policy term. It can be used to pay for the medical expenses of the policyholder.
Tax* benefits - Premiums paid and the payouts received on the term insurance policy will qualify for the tax* deduction and tax* exemption under Section 80C and Section 10(10D) of the Income Tax Act, 1961, subject to the terms and conditions. In addition, the premium applicable for a health-based rider# will qualify for a tax* deduction under Section 80D, subject to the terms and conditions.
Type Of Diabetes And Its Impact On The Term Insurance Policy
The different types of diabetes can significantly impact the cost and the coverage for the person with diabetes.
Type 1 Diabetes - Type 1 diabetes can start at a younger age. It is harder to control, and persons with Type 1 diabetes are considered to be at a higher risk. Therefore, the life insurance premium will be slightly higher for these individuals.
Type 2 Diabetes - Type 2 diabetes can occur later due to ageing and can be treated easily. Therefore, it does not pose a higher risk than Type 1 diabetes, and the applicable persons may not be required to pay a higher premium. However, if the policyholder is dependent on regular insulin intake, the premium will be subject to an increase.
Factors To Consider
Persons with diabetes should consider the various related factors before purchasing the best-term life insurance for diabetics considering their specific health conditions.
Age of diagnosis - If a person is diagnosed with diabetes at an early age, they are at a higher risk of contracting serious illnesses in the future. Therefore, they will have to afford a higher premium for the required sum assured. On the other hand, if it is diagnosed at a later stage, the risk is comparatively lower, reducing the premium.
Blood sugar levels - The insurer will consider the HbA1c test reports that will detail the average blood glucose levels for the last two to three months to determine the term insurance cost and benefits. Below 6% is considered normal, between 6% and 6.5% is prediabetic, and over 6.5% is considered diabetic.
Type of diabetes - Type 1 diabetes and persons taking insulin will find it difficult to control their blood glucose levels and are considered to be at higher risk. Therefore, they will have to pay a higher premium.
Other health issues - If the person with diabetes is affected due to any other health issues, it is important to inform the insurer. It is because the premium and the coverage can vary considering the health condition. And if it is not intimated, it can lead to policy claim rejections later when they are in extreme need.
Pre-medical screening - It is always best advised to take the pre-medical screening to determine the exact health condition to decide the coverage and the applicable premium to ascertain the maximum benefits.
The term insurance application for a person with diabetes will be approved easily if the blood glucose levels are under control and do not show a higher risk of developing serious illnesses in the future.
Tata AIA life insurance company provides the option to purchase term insurance plans online. Therefore, persons with diabetes can compare the different products and their customisable features to choose the best term insurance plan for all their future financial needs.
Term insurance for persons with diabetes is an ultimate necessity. It helps them secure their families in the event of their unexpected demise, considering their health condition. In addition, it provides flexible features and add-on riders# that help enhance the financial benefit. The premium and the coverage for the term insurance for persons with diabetes will depend on factors such as type of diabetes, age, other health conditions, etc. Therefore, it is important to compare the different options and choose the best term life insurance policy.