Term Insurance for Diabetics
Diabetics
Diabetes is one of the most common lifestyle diseases of today's times. It can be caused due to genetics or poor lifestyle choices1. There are many misconceptions about whether people with diabetes can buy term insurance.
Let us find out more about term insurance for diabetic patients to clarify your doubts.
What is term insurance for diabetics?
Term life insurance for diabetics provides a life cover` to patients who have been diagnosed with any type of diabetes, whether recently or not. It also provides insurance coverage to pre-diabetics.
How do types of diabetes affect term insurance?
Here's how the type of diabetes can affect term insurance:
Type 1 Diabetes
Type 1 diabetes can be the most serious of all types of diabetes. The only way to bring it under control and avoid any risk to the patient's life is through insulin. Given the severity of the situation, patients with Type 1 diabetes might need to pay higher premium.
Type 2 Diabetes
Type 2 diabetes can be managed through various means, including weight loss, dietary changes, medications and insulin. It is relatively less serious, which is why term insurance for patients with type 2 diabetes may be more affordable compared to Type 1 diabetes patients.
Gestational Type Diabetes
Gestational type diabetes can occur due to hormonal changes. It is most commonly caused due to high blood sugar during pregnancy. In most cases, it can be cured or managed through a healthy diet and insulin. Since this may be temporary, the term insurance rates may not be affected. However, the actual rates can differ from person to person.
What are the features of term insurance for diabetics?
Below are the features of term insurance for diabetic patients:
Death benefits
A term plan for diabetic patients offers death benefits to their loved ones in their absence. It helps the family fulfil their financial liabilities and achieve their goals.
Maturity benefits
Diabetic patients have the option of buying a term plan with a 'return of the premium' option. Such plans refund all the premium payments made toward the plan throughout the term on maturity.
Tax benefit
The premiums paid toward a term insurance plan can be claimed as a deduction of up to ₹ 1.5 lakh per annum as per the conditions prescribed under Section 123 (read with Schedule XV, Sr. No. 1, 2 & 4 )* of The Income Tax Act, 2025. This can help people with diabetes save money and use the money towards their medication and other healthcare needs. Also, the insurance payout to the nominee is exempted subject to the conditions prescribed under Section 11 (read with Schedule II, Sr. No. 2)* of The Income Tax Act, 2025.
Sum Assured
Generally, there is no limit on the maximum sum assured, however, the minimum sum assured is subject to the factors like income, tenure of the policy, premium amount and other factors.
Buying Process
The purchase process for term insurance for diabetic patients involves filling out an application and submitting it to the insurer. Insurance companies also take a medical test and may ask for past health records, if necessary. The policy will be active once the insurer approves the application and you pay the premium.
Claim Process
The claim process is quick and straightforward. The nominee can contact the insurer via email, phone, SMS or in person. The insurance company will require essential documents, such as the death certificate, identification, hospital papers and other documents.
Premium Payment Frequency
The premium for term life insurance for diabetics can be paid monthly, quarterly, semi-annually or annually.
Why is term insurance important for diabetics?
Here’s why term insurance for diabetics is an important financial tool that you must consider:
Financial security for families of diabetics
People living with diabetes may be more vulnerable to health-related risks. Term insurance for diabetic patients helps ensure that their loved ones remain financially secure in their absence.
Affordable protection tailored for diabetics
Term life insurance for diabetics is designed to address their specific needs. These plans take factors such as age, gender, diabetes type and overall health into account, and offer coverage options, policy tenure and premiums that align with the individual’s condition.
Coverage for diabetes-related health risks
Term insurance can provide coverage against risks associated with diabetes-related complications. This offers peace of mind by ensuring that your family is financially protected in case of an unfortunate event during the policy term.
Reassurance for diabetics and their loved ones
Choosing the best term insurance plan for diabetics gives patients and their families reassurance and peace of mind. It offers financial security and ensures your loved ones are protected no matter what the future holds.
What are the benefits of term insurance for diabetics?
Below are some benefits of purchasing term insurance for diabetic patients:
Comprehensive financial security
Term insurance provides financial security to the policyholder's loved ones in their absence with a life cover`. The high sum assured ensures that the family's diverse financial goals can be met even if the policyholder is no longer around to provide for them.
Low premium rates
Even though diabetics may pay a higher premium than others, term insurance remains one of the most affordable financial tools for saving for an emergency and providing for loved ones.
Multiple premium payment modes
The multiple payment options can help cater to the needs of different income groups and salary structures. You can choose the frequency of premium as per your exact needs, making it easier to factor term insurance into your budget.
What factors should you consider while buying a term insurance plan for diabetics?
Below are some factors to consider when buying term insurance:
Age of diagnosis
Purchasing a term insurance plan at a younger age typically lowers premiums. Conversely, you may face higher premiums if you get diagnosed with a health condition later in life and decide to buy a term insurance plan.
Blood sugar levels
If your blood sugar levels are normal and well-regulated in the months leading up to the application, you may qualify for a lower premium. However, in case of consistently high or fluctuating blood sugar levels, the premium may be higher.
Other health issues
Other pre-existing health issues, in addition to diabetes, can lead to a higher premium when applying for term insurance.
Pre-medical screening
Insurers will likely ask you to undergo a medical check-up before purchasing the plan to better understand your health.
What documents are required to buy term insurance for diabetics?
Here is a list of documents required to buy term insurance for a diabetic person in India:
| Type | Documents |
|---|---|
| Personal identity documents | Aadhaar card, PAN card, passport, voter ID, other government-approved ID/address proofs and any other documents specified in the plan |
| Medical history and physician reports | Physician reports, prescriptions, medical history records related to diabetes and any other documents specified in the plan |
| Recent lab test results | Blood glucose test reports, other diabetes-related lab reports any other documents specified in the plan |
| Lifestyle details and risk declarations | Smoking declaration, alcohol consumption declaration, dietary information, physical activity details any other documents specified in the plan |
Conclusion
Term life insurance for diabetics can be an essential financial tool to protect the entire family. It helps individuals and their loved ones secure their family’s future, stay financially prepared for the unexpected and enjoy lasting peace of mind.
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