A Term insurance plan is the simplest kind of life insurance plan that provides life coverage, further protecting the family of the policyholder. In case of the sudden demise of a policyholder, the family members will get life coverage that will include a predetermined amount as death benefits. Due to the non-involvement of the cash component, it offers an affordable premium amount, mainly for those with pre-existing medical conditions. Hence, a term plan offers financial stability in times of financial crunch due to medical expenses.
Pre-existing illnesses, such as Diabetes, whether Type I or type II, have become the most common diseases in today’s world. It is caused by genetics or lifestyle-related changes. Due to health-related risks, individuals suffering from diabetes are offered high premium rates. Insurance companies perform medical check-ups to evaluate the severity of the disease. Hence, one should maintain a healthy lifestyle & manage their blood sugar level to get a reduced premium cost.
Understanding Diabetes
There are mainly 3 types of diabetes, as discussed below:
- Type 1 Diabetes
It starts at an early age, which cannot be controlled easily &is highly risky. Due to the high risk involved, the premium rates are higher in comparison to regular premium amounts.
- Type 2 Diabetes
It starts at a later stage of life, hence it takes less time to react. Due to the lesser risk involved, the premium rates are lower. Though if an individual is on insulin, the premium amount is higher in that case.
- Gestational Diabetes
This diabetes is caused by changes in hormonal levels during pregnancy, which can be cured with the help of a healthy lifestyle. The actual rates vary from one individual to another.
Things to be considered while buying a Term Plan for a Diabetic Patient
The following are key considerations to keep in mind while purchasing a term insurance policy for diabetes patients.
- Easy Approval if it is under Control
Whether you are suffering from Type I or Type II diabetes, the term insurance can be availed if your medical condition has been under control for the past 6 months. Also, how you keep it under control, i.e., the means by which sugar levels are under control, also matters. Insurance companies prefer those patients who have controlled their blood sugar levels through a healthy lifestyle & exercise or through oral medicines instead of insulin.
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Other Health Complications or Risks
Some patients also have other diseases, such as BP, heart disease, & obesity, which increases the chance of policy getting rejected or high premiums, which further increases the problem.
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Age of Diagnosis
If the diabetes is diagnosed early, the premium rates will rise due to longer complications involved & duration. On the contrary, if it gets diagnosed later, the premium cost can be affordable for you.
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Insurers Consider Type 2 Diabetes
Insurance companies prefer Type 2 diabetes patients more than Type 1, because the former is just an age-related or genetic condition, which can be controlled with the help of oral medication only. On the contrary, Type 1 requires insulin & has to be kept under medical supervision.
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Blood Sugar Levels Play a Significant Role
To know about the severity of diabetes, one can get the HbA1C test done, which enables us to know the average blood sugar levels of the last 2-3 months.
Below 5.7% – Normal, i.e., No Risk of Diabetes
Between 5.7% & 6.4% – Pre Diabetes, i.e,. increased level of risk of diabetes
Above 6.5% – Diabetes, which requires medical attention
Reasons to Buy a Term Plan for Diabetic Patients
Provided are the reasons one should buy a term plan for diabetes patients:
- Increasing Costs
The rising medical check-up costs, medicine costs, diagnostic test costs, & hospital visits can be easily dealt with by a term insurance.
- Increased Risks
Due to diabetic complications, the risk of kidney damage & cardiovascular issues increases, requiring regular medical attention.
- Better Care
There is no need to worry about the financial costs to avail of high-end treatments & facilities with term insurance.
- Tax Benefits
It offers a tax deduction on the premium amount paid u/s 80C of the Income Tax Act of India, 1961.
Steps to Choose the Right Term Plan for Diabetes Patients
Provided are the steps to choose the right term plan for diabetes patients:
- Research & Compare:
Review all the available plans that cater for diabetes & compare them to choose the most appropriate one.
- Use a Term Insurance Calculator:
The term insurance calculator can be used for budgeting & term insurance comparison purposes, helping to calculate the premium amount. The calculation of the premium amount depends on the desired coverage amount, health conditions, & age factor.
- Evaluate the Insurer’s Reputation:
Evaluate the creditworthiness of the insurance company, which means opting for one with a sound track record, preferably one that manages diabetic policyholders.
- Check for Additional Benefit:
Evaluate the additional riders available, if any, such as accidental disability benefits, critical illness riders, etc., which will best suit diabetics.
Steps to Buy a Term Plan for Diabetes Patients
Provided are the steps to buy a term plan for diabetics:
- Click the tab “Term Insurance for Diabetics”.
- Fill out the basic details such as name, age, gender, date of birth, contact details, etc.
- Provide income-related information, such as annual income, type of occupation, smoking habits, educational qualifications, etc.
- Proceed to make payment towards the premium amount.
Conclusion
Term Insurance for diabetics is vital as it provides the financial security to the family members in case of complications or sudden demise of the policyholder. One should get their diabetes diagnosis done, in order to check whether the same, i.e., Type I or II, is covered in the plan or not. The coverage & premium amount depend on certain factors, such as health conditions, age, type of diabetes, etc. Thus, it becomes necessary to compare different insurance options available & then opt for the most appropriate one.
