With an estimated 77 million diabetics, India is next only to China in terms of the number of diabetes cases in the world. Genetics, sedentary lifestyle, poor diet, etc., are some of the factors contributing to the rapid spread of the disease in the country.
Adopting a healthy lifestyle to prevent or delay the onset of the disease should be a priority. Additionally, a person who has diabetes should consider buying term insurance so that the family gets some financial support if the policyholder succumbs to the disease.
Term Insurance
A term plan is a type of life insurance policy wherein the policyholder pays a lump sum or recurring premium toward the insurance plan, and the insurer provides insurance coverage in return for a pre-defined period. The insurer pays a lump sum amount to the nominee if the policyholder dies within the policy term. A term insurance plan offers no maturity benefit.
Term plans are fast gaining popularity because they provide high insurance cover at a relatively lower premium.
Points To Remember for Diabetic Patients While Seeking Term Insurance
People with diabetes can purchase a term plan provided they fulfil certain conditions.
- Diabetes Under Control
Not all diabetes cases are severe. Whether you are suffering from Type 1 or Type 2 diabetes, the severity of your condition can determine your eligibility for term insurance. An insurer can approve your term insurance application with favourable premium rates if:
- Your diabetic condition is stable and under control through consistent treatment.
- You follow a healthy diet chart and exercise regularly.
- You are on oral medications and don’t rely on insulin.
- Early Diagnosis
If someone is diagnosed with diabetes before the age of 40, the insurer considers it an early diagnosis. The onset of diagnosis at an early age can be regarded as risky by the insurance underwriting process. Therefore, the insurer is likely to charge a higher premium in such cases.
On the other hand, diabetes diagnosed at an older age is not considered risky if the individual doesn’t have any other significant ailments, resulting in a lower premium offering from the insurer.
- Diabetes Types
The insurance premium or even the approval of the term can depend upon the type of diabetes a person has.
Type 2 or non-insulin-dependent diabetic patients are considered less risky, whereas those suffering from Type 1 or insulin-dependent diabetes are more prone to health risks requiring strict supervision.
- Blood Sugar Levels
The A1C level in the blood is used to determine the severity of diabetes. An A1C level less than 7 indicates that the diabetes is under control, whereas the A1C level above 7 is considered high and risky.
The insurance underwriting process refers to the A1C level before approving a term insurance plan. Therefore, a person having an A1C level below 7 and no other health complications can get standard premium rates from the insurer.
On the contrary, a higher A1C level can result in higher premium amounts.
Apart from the points mentioned above, numerous other factors combine to determine the eligibility of a person with diabetes to get term insurance. The important takeaway is that a term plan is possible even if you have diabetes.
All you need is to discuss your condition with the officials of the insurance firm and come clean on your medical records so that you can get the term plan best suited for your needs.