Term Insurance for Diabetics
In India, the number of patients having diabetes is rising steadily. As per reports1, there were 77 million people with diabetes in India in 2019, and the number is expected to reach 134 million by the year 2045.
People who have been diagnosed with diabetes may find it difficult to get a life cover. They may feel vulnerable with no protection cover to fulfil their responsibility of financially safeguarding their families. Some insurance companies offer term insurance plans for people with diabetes2 and cover them against the risk of a premature demise subject to policy terms and conditions.
Why Should Person With Diabetes Consider Investing In A Term Insurance Plan?
Though diabetes might not be a terminal illness, it is an illness nevertheless. It can result in various health complications3. Moreover, in the case of severe diabetes, an individual might also die prematurely4.
Given these reasons, you may want to consider buying a term insurance plan if you have diabetes. The plan will cover the risk of premature death and secure the family’s financial future in your absence.
Important Aspects Of Term Insurance For Person With Diabetes
Though person with diabetes can buy a term life insurance plan, here are some aspects that should be kept in mind:
1. Impact on Premiums
Since the insured individual suffers from a known condition, the risk is high. As such, the insurance company may require higher premium to cover the increased risk under term insurance for person with diabetes5.
2. Pre-Entrance Health Check-Ups
Some insurance companies will insist on a pre-entrance health check-up to assess the severity of the illness before granting term insurance for a person with diabetes7.
3. Diabetes Declaration
It is important to declare your diabetes when buying term insurance. In the proposal form, the insurance company asks about your medical conditions. In the medical section, you should inform the insurance company about your existing conditions like diabetes. This will help the insurer to assess the risk and issue the term insurance policy.
The declaration of diabetes is also important because insurance plans are contracts of utmost good faith. The insurance company believes that you have provided all the right information while buying the policy. If the insurance company finds out that you have distorted or not disclosed certain facts pertaining to your health, it may deny claim payment to your nominee.
The Bottom Line
Know what term insurance is and invest in a suitable plan. With a comprehensive term plan for people with diabetes, you can secure your family’s financial future and get peace of mind too. So, consider investing in a suitable plan of term insurance and stay financially protected. The issuance of the policy considering the diabetes will depend on the underwriting guidelines of the insurance company and product terms and conditions.
Reference
1. https://www.ncbi.nlm.nih.gov/pmc/articles/PMC8725109/
2. https://www.livemint.com/insurance/news/icici-pru-s-new-insurance-plan-covers-diabetics-others-with-health-conditions-11575542113431.html
3. https://www.cdc.gov/diabetes/managing/problems.html#:~:text=Common%20diabetes%20health%20complications%20include,%2C%20hearing%2C%20and%20mental%20health.
4. https://www.who.int/news-room/fact-sheets/detail/diabetes#:~:text=Diabetes%20is%20a%20major%20cause,an%20estimated%202%20million%20deaths.
5. https://www.insuranceinstituteofindia.com/downloads/IC38/ALEnglish.pdf (Page 189 in PDF or 184-185 in book)
6. https://www.insuranceinstituteofindia.com/downloads/IC38/ALEnglish.pdf (page 273 in PDF and 269 in book) https://www.insuranceinstituteofindia.com/downloads/IC38/ALEnglish.pdf (page 275 in PDF and 271 in book)
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