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.

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 80C^* of The Income Tax Act, 1961. 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 10(10D)^* of The Income Tax Act, 1961.

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.

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.

Factors to consider while buying 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.

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