The Long Read
Everything you *need to know* is right above this. Scroll down, only if you'd still like to read more (honestly, why?)
Term insurance is an affordable form of life insurance. It works this way:
1. You pay a fixed amount of money (called premium) for a fixed period of time (called premium payment term)
2. The policy covers you for a fixed period of time (called policy period)
3. If you pass away during the policy period, your family gets the life cover as a payout
This payout can be used by them to overcome any financial difficulties (such as loan repayment, maintaining their current lifestyle) that may arise when you pass away. Understand this, diabetic or not, you should consider getting a term plan if your loved ones are dependent on your income (for example for their education or living expenses). Further if you are a diabetic, you’re more prone to suffering from other serious health conditions such as heart disease. So yes, you should strongly consider getting a term plan.
Yes, you are eligible to apply for a term plan even if you’re diabetic, if you meet the following general conditions:
You’re between the age of 18-65*
You’re an Indian citizen/resident/PIO (Person of Indian Origin)/ NRI (Non-Resident Indian)
You have an active income and can show the proof of the same
*May vary from insurer to insurer
There’s no harm in applying for a term policy, even if you’re diabetic. Learn more about term insurance eligibility.
Term insurance is an affordable way to protect the financial future of your loved ones. The payout from it can help them overcome any financial difficulties that may arise after your passing away (such as loan repayment or maintaining their current lifestyle).
As a diabetic, unfortunately, you’re more prone to suffering from other serious health conditions such as heart disease, high blood pressure and so on. Your health is the main reason why you should consider buying term insurance to protect your family from any financial trouble in your absence.
Find out more about the benefits of term insurance and why you should buy it for your family’s financial security.
Irrespective of whether you have Type 1 or Type 2 diabetes, you can still apply for a term plan. However, your premiums may get affected depending on the type you suffer from. Type 1 diabetics may receive higher premiums compared to people suffering from Type 2. If you have gestational diabetes, i.e., diabetes during pregnancy, you may want to apply for a term plan after a while as this condition may go away. If it does go away, you may get a term plan at lower premium rates.
Depending on your case, there may be extra medical tests. For example, if your insurer wants to know if your diabetes has affected other organs in your body, they may ask you to undergo more medical tests. Otherwise, you may have to just undergo the general medical tests* such as:
Urine test
Blood tests including CBC
Lipid profile
Blood pressure
Liver and kidney function
Fasting blood sugar
ECG/TMT/2D Echocardiography
Ultrasonography
Chest X-RAY
HIV
Treadmill test
*May vary from insurer to insurer
Find out more about what medical tests you need to take for a term plan.
But remember, that these additional tests are not there just because you’re diabetic. The insurer won’t discriminate against you because of your health condition. It is all a part of term insurance underwriting. An insurer may even ask a non-diabetic person to take additional medical tests if they spot some red flags in their health conditions as disclosed by the applicant and want to have a deeper understanding of that person’s health profile.
Not really. While being diabetic could put you at a higher health risk than a non-diabetic person, it does not mean your term insurance application will get automatically rejected because of your condition.
It may get rejected if there are any other underlying diseases (such as liver/kidney/heart problems) over and above your diabetes.* But, if you maintain your health properly and your diabetes is under control, you may still get a term plan.
*May vary from insurer to insurer
Well, there are chances that your premium could be higher if you’re diabetic because you are at a higher risk of developing other health conditions such as high blood pressure, heart problems, etc. Upon assessment of your health, your insurer may come to the conclusion that there is potentially a lot of risk involved in offering you a term plan, hence, they may want to increase your premiums. Find out about the factors that can increase your premiums.
If your diabetes is under control, then you should buy a term plan as early as possible. Term plan premiums become expensive as you age and if you’re not able to manage your diabetes well, then you will either end up paying a very high premium or may even become ineligible for a term plan over time, if you delay purchasing it. Find out more about the best time to buy a term insurance policy.
Unfortunately, you may not be able to purchase a critical illness rider if you’re diabetic. But, you should still get in touch with your insurer and ask if they would be able to provide you with a critical illness rider.
While adding the critical illness rider to your policy may be difficult, you may still be able to add other riders to your term plan.
Riders provide coverage for events which are over and above what your base plan covers. Certain riders such as the hospital care benefit rider can help you pay for hospitalisation expenses if you ever get hospitalised. You can add riders either along with your term plan or later (on any of your policy anniversary dates). While you can buy riders after buying a term insurance policy, It’s suggested that you buy them along with your term plan because you may not be eligible for certain riders later on after buying the term plan.
Find out which riders you can consider adding by taking the KlarifyLife Term Guide.
Here’s what you can do:
Find out the exact reason for the decision
Consult your doctor to manage your diabetes and other illnesses
Reapply (after the cooling off period recommended by the insurer, if any)
As long as you have declared your diabetes at the time of term plan application, you don’t have to worry. Your term plan claim will not get rejected if you pass away due to a diabetes related issue. Find out about reasons that can get your term plan claim rejected.
No, just because you’re diabetic does not mean that you’ll be offered a low term life cover.
No, don’t do this. Hiding information at the time of buying a term plan can result in your claim getting rejected later on. While your premium may be higher if you reveal that you’re a diabetic, it’s still better than your nominee facing a claim rejection when they need your life cover amount in your absence.
See, as long as you’re managing your diabetes well, you should apply for a term plan at the earliest. If you wait, you may not be able to maintain your condition and you may end up getting a term plan at a higher cost or be considered not eligible for it.
No, you should get an individual term plan for yourself and not rely on your spouse’s term plan. Here’s why:
If both you and your spouse were earning, then upon your demise, the family income would reduce
If one of you was not an earning member, your family may need to hire someone for the care that the non-earning member was providing and the earning spouse may have to cut back hours at work to take care of the family, resulting in a pay cut
If there’s a change of heart between you and your spouse, your spouse’s term plan may no longer benefit your family
Find out more about why it’s important to have an individual term plan even if your spouse has one.
You can still save on premiums by taking the following steps:
Cover yourself only till you retire. An unnecessary long policy period may cost you more
Don’t choose a life cover that is more than you require. A larger life cover can mean higher premiums.
Riders can add to your term plan premium costs. So, only choose those riders that you feel are essential
Compare term plans from different insurers to choose the best value for money option
If you know what you want from a term plan, consider buying a term plan online. Plans sold online can be slightly cheaper than those sold offline
Try the KlarifyLife Term Guide to understand your exact term insurance needs.
You should get covered till the age that you plan to retire. Covering for an unnecessarily long duration can mean that you have to pay expensive premiums for your term plan. Additionally, by your retirement age:
You may have taken care of most of your financial liabilities
Your financial dependents may have become independent
You may have created enough wealth to help your family overcome any financial difficulties
Find out more about the age you need to stay covered till.
However, if you want to use your term insurance as a means of estate planning, i.e. to provide your loved ones with an inheritance once you pass away, then you stay covered till 99 years.
© 2021 KlarifyLife. All rights reserved.
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