Term Life Insurance for Diabetics in India

Today, diabetes has become one of the most widely spread lifestyle disorders in India, often leading to numerous health complications over time. Thus, for people with this disorder, having term insurance for diabetics is a must to financially safeguard their loved ones in case of their unfortunate demise.

Keep scrolling for a detailed overview!

Term insurance for diabetics is a special term life insurance policy that is tailored for individuals suffering from diabetes. Just like normal term plans, it comes with a death benefit in case of the policyholder’s unfortunate demise during the policy period.

However, the eligibility criteria and policy features are customised to favour diabetic applicants. Thus, even if the applicants have a pre-existing medical condition, they can apply for insurance coverage, providing financial security to their loved ones.

Life Coverage

Family's Financial Stability

For individuals who are the only earning member in their family, having a term plan can help financially secure their family’s future in their absence.

The beneficiaries can use the death benefit to cover various expenses, such as household costs, debt, medical bills, etc., without immediately looking for an alternative income source.

Riders to Enhance Policy Coverage

Term plans enable you to opt for several riders and add-ons to enhance policy coverage. For instance, you can choose a return premium rider to get back all the premiums once you survive the policy period.

Additionally, taking advantage of a critical illness benefit enables you to receive a lump sum payout if you are unfortunately diagnosed with a serious medical condition during the policy tenure.

Affordable Premiums

Tax Benefits

Individual Files Policy Application

Insurer Suggests Medical Tests

Insurer Analyses the Medical Reports

After the medical reports are released, the insurer analyses the results and starts their underwriting process. Such assessments help set the premium amount, which may be higher due to potential health complications linked to diabetes.

Insurers also determine the policy terms based on the condition’s impact, balancing affordability with coverage options that fit a diabetic patient’s needs.

The Applicant Receives an Offer

1. Pure Term Plan

2. Term Plan with Return of Premium

3. Increasing Term Plans

4. Decreasing Term Plans

Decreasing term plans offer a sum assured that decreases each year by a specific amount or percentage while the premium remains constant. Such plans are ideal for individuals seeking insurance coverage for a particular period and for a specific purpose that decreases specific obligations, like paying off debt.

Thus, as the outstanding liabilities decrease, so does the sum assured.

Type 1 Diabetes

Type 1 diabetes is a lifelong condition in which a person’s immune system destroys their insulin-producing cells. It generally occurs at an early age and, as of now, has no cure and needs consistent monitoring and treatment to avoid complications.

In case the applicant has Type 1 diabetes, the insurer charges high premiums to cover the increased risk associated with providing coverage to the individual.

Type 2 Diabetes

Type 2 diabetes is a lifestyle disease when the body’s cells cannot produce enough insulin or do not properly react to insulin. This disease can be managed and reversed with medication and a healthy lifestyle.

As this type of diabetes is easy to control, the premiums are less compared to Type 1 diabetes. However, if the applicant is too dependent on insulin injections to manage their diabetes, the premium amount may be higher.

Gestational Type Diabetes

When applying for term insurance for diabetic patients, the insurer may ask the applicant to appear for medical tests based on their underwriting process and the individual’s health stats. Generally, they recommend the following:

• Fasting Blood Sugar Levels (HbA1c test)
• BMI Test
• Complete Blood Count (CBC)
• Lipid Profile
• Urine Test
• Liver Function Test, etc.

Higher Premiums

More Stringent Medical Evaluations

As individuals with diabetes apply for a term plan with a pre-existing disease, the insurer will conduct more stringent medical evaluations to assess the applicant’s current health condition and detect any other underlying diseases that may result in complications down the line.

This also helps align with the underwriting processes that help them determine the sum assured and the premium amount for the applicant.

Limitations on Policy Features for Individuals with Severe Diabetes

Diagnosis of Age

In the case of applicants who were diagnosed with diabetes at an early age, there is a high risk of contracting other serious illnesses in their later years. Thus, to cover such risks, insurers will charge a higher premium for such individuals.

Alternatively, for people diagnosed with diabetes at a younger age, this risk is comparatively lower, which means their premium amounts will also be lower.

Diabetes Type

Blood Sugar Levels

Usually, insurance companies consult the applicant’s HbA1c test reports of the last two to three months to determine their average blood glucose levels. If the results are less than 6%, the individual is considered normal; between 6% and 6.5% is prediabetic, and over 6.5% is considered diabetic.

This assessment helps the insurer with their underwriting process. It helps them assess the risk associated with providing coverage to the person and determine the sum assured and the premium amount.

Other Medical Issues

If the applicant has any diseases other than diabetes, they must immediately inform the insurance company. Such factors are crucial in determining the risk associated, sum assured, and premium amount.

If such conditions are not reported beforehand, it can lead to claim rejection at times of need.

Pre-Medical Screening