If you have diabetes, you must already have a medication and treatment plan in place, along with lifestyle changes that you adhere to (hopefully) to manage the ailment throughout your lifetime. However, if you have not got adequate insurance yet, then you are not on the right track.
Why is term insurance for diabetics a must? In addition, many diabetics often wonder whether they are eligible for term plans. This article covers all these aspects while outlining the importance of a term insurance policy not just for people with diabetes but everyone else. Here’s looking at some of the key aspects in this regard.
Table of Contents
Why Term Insurance Is Needed In Every Portfolio
There are very few investments that are universally acceptable and relevant for every household or individual. Term insurance is one of them. Here are some points on why term insurance is necessary for every portfolio:
- Term insurance offers pure life coverage for the policyholder in exchange for a premium payment.
- It offers a chance to get comparatively higher coverage for a lower premium amount.
- In case of the untimely demise of the insured within the policy tenure, the insurance company pays a fixed sum assured to their nominees. This helps the family take care of monthly expenditures, pay off debts, if any, and take care of future family goals.
- Term insurance also ensures attractive tax deductions on premium payments under Section 80C (under Rs. 1.5 lakh). The payout from the insurance company that results from a death claim is also tax-exempted under Section 10 (10D).
You can always use a term plan calculator to determine the amount payable for a specific coverage amount. The biggest feature or benefit of choosing term insurance is that you gain higher peace of mind, knowing that your family is financially secure even in your absence. You need it even more so if you have diabetes.
Why Do Diabetics Require Term Insurance?
Term insurance for diabetics is indispensable for the following reasons:
- Being diabetic, your risk quotient will naturally be higher. In this scenario, term insurance is what will financially cover your family’s needs in the case of your unfortunate demise in the future.
- In such a scenario, term insurance plans offer a lump sum payout to the nominees. Your family can use this for future goals, investments, living standards, and even repaying your debts and loans if you have them.
- Term insurance plans usually offer high coverage at a comparatively lower rate. This is another advantage for those with diabetes. They can remain worry-free and keep stress at bay since they will be assured about their family’s financial security down the line. This naturally contributes towards better health and well-being.
- As mentioned earlier, you can ensure higher tax savings with your term insurance premium payments.
- You can add a critical illness or another health-related rider to your policy to widen your scope of coverage while getting additional tax benefits.
Things to Remember While Buying Term Insurance
If you have diabetes, then here are some key points that you should not forget while buying term insurance:
- There are dedicated plans offering term insurance for diabetics, and they are tailored to your specific needs. You can choose these plans for better terms and conditions in case you are worried about being rejected for a traditional term insurance policy.
- If you are still applying for regular-term insurance, keep the diagnosis age in mind. This is the age at which you were diagnosed with the condition. Early diagnosis before 40 years of age means a higher risk for the insurer. Hence, you may have to pay a higher premium amount. The rates will be lower if you have been diagnosed at a later stage in life.
- Those with Type-1 diabetes may have to pay higher premiums as compared to those with Type-2 diabetes. The former requires stringent medical care and supervision, while the latter can be controlled with oral medication and insulin in most cases.
- What is the severity of your condition? The A1C level assesses it. Any level of 7 is an indicator of an ideal scenario, while a figure that is lower than 7 means that you have controlled diabetes. Premiums may be higher for those with higher A1C levels since they are reasoned to have higher risks. Those with <7 A1C levels and no other health conditions may get term insurance at near-standard or standard premium rates.
- The insurance company may insist on a medical test before the policy approval to gauge your medical condition. This will influence their policy approval/rejection decision and the premium rates.
- Accompanying medical conditions with diabetes may lead to the application being rejected or considerably higher premium payments for applicants.
Hence, keep these points in mind while applying for term insurance as a person with diabetes. You can also reach out to companies offering dedicated term insurance for diabetics in this regard. Whatever be it, securing your family financially with a term plan is non-negotiable.
