Can diabetic people buy term insurance?

Diabetes is a chronic condition characterized by high blood glucose levels. It has the potential to cause significant damage to the body’s key organs. Diabetic people may find it difficult to carry out their daily duties at times. As a result, maintaining stable blood glucose levels is important. However, due to hereditary reasons and shifting lifestyles, diabetes has become more common, especially among young people.

There are other challenges that Diabetes patients go through apart from the lifestyle one and that is, paying extra for the term life insurance plan. If you are diabetic or planning to get one for your family member, this article is for you. From term insurance to how to secure insurance for them, this article covers everything. 

What is Term insurance for diabetics?

Term life insurance plan for diabetics is any policy that provides death benefit coverage to those with Diabetes Type I, Type II, Pre-Diabetic, Insipidus, or Gestational. When you start to read about the term insurance meaning, its eligibility and more, one will understand term plan comes with its own eligibility criteria such as:

• The policyholder’s age
• His/her occupation and income slab
• His/her educational qualification
• Lifestyle and Habits
• Preexisting medical conditions

Medical conditions, such as diabetes, can present your profile to the insurance as high-risk. Consider Type II diabetes, which is a widespread lifestyle disease that affects a large percentage of the Indian population. Under such circumstances, insurance companies across the country cannot ignore this huge number of prospective customers. In other words, one will be able to obtain the term life insurance despite having this condition. However, to mitigate the high payout risk posed by these policyholders, insurers set certain restrictions, which you should be aware of before purchasing a term insurance policy.

Why Should diabetic patients get term insurance plans in India?

Diabetes, along with hypertension and asthma, are currently among the most common medical conditions in the country. Diabetes can be a devastating disease that affects several organs to the point where they fail to function. As a result, you may end up suffering kidney failure, heart problems, and other complications. The resulting chain effect can frequently lead to multi-organ failure and, ultimately, death. Some of these types of diabetes cause many health consequences over time that may be fatal in the future, which is why, if you have diabetes, you should begin planning for your family’s financial future.

How buying a term life insurance plan will benefit the diabetic patient?

Term insurance plans have recently gained popularity and people across India have started researching term insurance meaning, its eligibility and how much sum assured they should have. However, if you currently have a severe lifestyle disease like diabetes, term insurance policies are a must-buy for the following reasons:

Affordability: Term insurance policies come with low-premium but to get the nominal premium, the policyholders have to meet the strict eligibility requirements before purchasing a term insurance plan. If you have diabetes, you already will be keeping aside a percentage of your monthly income to pay for insulin, treatments, and visits to doctors/specialists. On the other hand, you should also think about the future, and have a fund ready that will kick in if you die unexpectedly. Term insurance policies can assist you with this purpose by providing financial assistance to help your family achieve their life stage goals. 

Tax benefits: Term insurance premiums are tax deductible under Section 80C for up to ₹1.5 lakhs.

Ease of Availability: If you meet all of the qualifying requirements, term life insurance plans are available from practically all of the top life insurance companies. All insurers now offer diabetic term insurance (subject to the underwriting team’s decision).

What to Consider When Buying a Term Insurance Plan for Diabetics in India?

Now that you know why you should be getting a term insurance plan for diabetics, there are a few important aspects you should be familiar with. For example, insurers consider the risks associated with selling a term insurance plan to the policyholder, as the insurer may wind up paying a significant amount as a death benefit. In such a situation, a potential policyholder who is preparing to apply for a term insurance policy may need to consider a few plausible scenarios as an answer to their application.

Be prepared for a counter-offer: If you apply for a term life insurance plan as a diabetic policyholder, the insurer may ask you to pursue a counter-offer. These counteroffers can be of two varieties:

Insurers may demand a higher premium: The provider in question may need you to put more skin in the game by paying higher premiums for the required coverage amount. This sum will be larger than in typical situations since you pose a higher risk of payout to the provider.

Providers may set a limit on your eligible sum assured: The insurer may keep the premium low while lowering the maximum sum assured you ask for.

Term insurance riders may not be provided: Some insurers may not provide you with the option to purchase term insurance riders such as Critical Illness Benefits, Premium Waiver, Terminal Illness, Lifestage Benefits, and others.

Insurers may request that you postpone the application: Your term insurance provider may also propose that you postpone the entire application process in the hope that your diabetes will be under control. The postponement request could be for 6 months or a year, depending on the underwriting team’s assessment of your medical history.

Insurers may reject your application outright: After analyzing your case, the underwriting staff might decide that the profile is too hazardous for them and hence reject the application entirely.

It is reasonable to be concerned about your family’s future after contracting a severe illness such as diabetes. As a result, you should consider low-cost choices such as diabetic term insurance to supplement your family’s income. However, before making a purchase, read about the term insurance meaning, carefully consider the insurer’s prospective counteroffers and limits. This will allow you to better prepare for the outcomes.