What are the Best Term Insurance Plans for Diabetics

Take a look at this testimonial:

“I have Type II Diabetes and wanted to get a health insurance policy for myself. I looked around a bit but faced a couple of rejections, considering my medical issue. Then, I heard of Ditto. I had to check! Here’s what I found - their advisors were extremely cooperative and quickly got me a plan that was not just affordable but actually covered my PED with the lowest waiting period possible. And all of this without a single spam call! I will soon be back for a term insurance policy!”

True to his words, a few days ago, he reached out to us - this time, he wanted to purchase a term insurance plan for diabetics. However, he had his doubts. Unlike health insurance, in the case of term insurance policies, the stakes were higher -  a high sum assured, pocket-friendly premiums, multiple term insurance riders to ensure customisation, multiple tax benefits, and more.

Despite his doubts, he bagged one of the best term insurance plans from a credible provider and thus secured his family’s financial future in the event of his unfortunate absence!

But how did this become possible? Don’t term insurers have issues with your pre-existing medical conditions? (They do.) Don’t providers consider potential diabetic policyholders to be a high-risk case? (They do.) Did he have to pay a painstakingly high premium? (No, he didn’t!)

So, if you are (know) somebody with diabetes searching for a term insurance policy, this blog is for you!

Heads Up: It takes an average person up to 5 hours to read & analyze a policy, and 10 hours or more to compare different plans and make a decision.

This is why we propose a better alternative - taking a 30-minute FREE consultation with Ditto’s certified advisors. We have a spam-free guarantee, and we’ll never push you to buy a plan. Don’t delay this - we have limited slots every day, so book a quick call here before they run out.

Best Term Insurance Plans for Diabetics

What is Term Insurance For Diabetics?

Unknown to many, any of the top-term insurance policies from a credible provider will cover you, even if you have diabetes. Considering this, term insurance for diabetics is any policy that offers death benefit coverage to people with Diabetes Type I, type II, Pre-Diabetic, Insipidus, or Gestational.

Now, it’s true that term insurance providers are stringent with their eligibility criteria, which include factors like -

• The policyholder’s age
• his/her occupation
• his/her income slab
• his/her educational qualification
• The current financial bandwidth
• Lifestyle
• Habits
• Pre-existing medical conditions

Medical issues like diabetes can actually present your portfolio as a high-risk profile to the insurer. However, take Type II diabetes, for example - this is a most common lifestyle ailment that has affected a majority of the Indian population. Under such circumstances, term insurance providers across the country can’t disregard such a vast pool of potential policyholders.

Thus, despite this lifestyle ailment, policyholders can avail of suitable term insurance plans. However, to bridge the high payout risk posed by these policyholders, insurers impose certain restrictions that you need to be aware of before you purchase a term insurance policy.

Now, let’s discuss if you at all need a term insurance plan as a diabetic patient -

Why Should Diabetics Purchase Term Insurance Plans in India?

Well, there are two parts to this query -

1. Why should you buy a term insurance plan as a diabetic patient?

Diabetes is currently one of the most common lifestyle ailments in the country, along with hypertension and asthma. As an ailment, diabetes can be a catastrophic situation that leads to multiple organs being affected to the point where the organs fail to function. So, you are looking at kidney failure, cardiac events, and more. This domino effect can often lead to multi-organ failure and, subsequently, death.

Let’s take a quick look at the type of diabetes and the possibility of fatalities -

Some of these types of diabetes give way to multiple health complications over time that may turn fatal in the future, leaving you the reasons why, in case you have diabetes, you should start ensuring your family’s financial future.

 2. Why should you buy a term insurance policy?

Term insurance plans have recently become quite popular as a type of life insurance policy. However, if you already have a critical lifestyle ailment like diabetes, term insurance plans are a must-buy because -

• Affordability - Term insurance policies require nominal premiums, considering that policyholders have to undergo stringent eligibility criteria before they can purchase a term insurance plan. Now, if you are a diabetic patient, you might need to invest a portion of your monthly income into purchasing insulin, getting treatments, and visiting physicians/specialists. On the other side, thinking of the long-term consequences, you will also need to ensure that you have a fund that can kick in in the event of your unfortunate/sudden demise. Term insurance plans can help you with this intent and offer financial aid to help your family reach their life stage goals without many hurdles.
• Tax benefits - Term insurance premiums are tax deductible under Section 80C up to ₹1.5 lakhs.
• Ease of availability - Considering you have met all the required eligibility criteria, term insurance plans are available from almost all the leading life insurance providers. Now, all insurers offer term insurance for diabetics (based on the decision of the underwriting team). You can reach out to experts and ask them for help in choosing a suitable term insurance plan. You can also compare term insurance policies using a free tool before deciding on a plan.

Now that you know why you should be purchasing a term insurance plan for diabetics, there are a few rules and regulations from the insurers that you need to be acquainted with -

Things to Remember When Purchasing a Term Insurance Plan for Diabetics in India

Now, it’s true that term insurance providers offer plans to diabetic individuals. However, insurers do compute the risks involved in offering a term insurance plan to the policyholder since the insurer might end up paying a substantial amount as a death benefit. Considering such a situation, a potential policyholder who is planning to apply for a term insurance policy may need to consider a few probable scenarios as an answer to their application -

1. Be ready for a counter-offer - When you apply for a term insurance plan as a diabetic policyholder, the insurer may request you to follow up on a counter-offer. These counteroffers may be of two types -
2. Insurers may require a higher premium - The provider in question may need you to put more skin in the game by paying higher premiums for the requested cover amount. This amount will be higher than the standard cases because you present a higher risk of payout for the provider.
3. Providers may put a cap on your eligible sum assured - The insurer may keep the premium affordable while reducing the maximum sum assured you apply for. So, in general, your ideal cover amount can be calculated via free calculators that take into account your age, income, existing loans, and monthly expenses. So, say your ideal cover amount comes to ₹3 crores. In this case, considering your diabetes, the insurer can say that the maximum cover amount they can offer you is ₹2 crores.
4. Term insurance riders may not be available - Insurers may not offer you the options to avail of term insurance riders like Critical Illness Benefits, Waiver of Premium, Terminal Illness, Lifestage Benefits, and more.
5. Insurers may request that you postpone the application - The term insurance provider may also request that you postpone the entire application in the hope that your diabetes will be under control. The postponement request may be for 6 months or 1 year, depending on the underwriting team’s evaluation of your medical history.
6. Insurers may reject your application altogether - After evaluating your case, the underwriting team may decide that the profile is too risky for them and, hence, reject the application completely.

(Please note: The abovementioned pointers are probable scenarios. The actual consequence will vary depending on the potential policyholder’s profile and the underwriting team’s evaluation of the profile.)

What are the Best Term Insurance Plans for Diabetics in India?

1. Max Life Smart Total Elite Protection - This is a 2.0 version of Max Life Smart Secure Plus policy, wherein there are a couple of built-in features, such as the Insta payment on claim intuition (₹2 lakhs instant disbursal once the beneficiary informs the provider about the death of the policyholder) and cover continuance benefit (premium). The plan is comprehensive and affordable and comes with a list of riders -

• Critical Illness benefits (64 and 22 ailments)
• Total and Permanent Disability rider
• Zero Cost Option
• Smart Exit Option
• Waiver of Premium

Drawback: The plan requires policyholders to have a minimum annual income of ₹10 lakhs and offers coverage exceeding or equal to ₹2 crores.

  2. HDFC Life Click2Protect Super - This is a comparatively pricier plan that is comprehensive and considered one of the most popular term insurance policies available in the industry. The plan has 3 variants (Life, Life Plus, and Life Goal), and the riders include -

• Return of Premium
• Waiver of Premium on Total and Permanent Disability
• Renewability Option at Maturity
• Life Stage Option
• Waiver of Premium on Critical Illness
• Spouse Cover Option

Drawback: The plan is a tad bit more expensive.

  3. Bajaj Life eTouch - This is one of the most affordable term insurance plans that comes with 3 variants - Life Shield, Life Shield Plus, and Life Shield Return of Premium. While the plan is popular owing to its pocket-friendly premiums, there is a significant caveat.

However, let’s first take a look at the features available -

• Death benefits,
• Terminal illness,
• Waiver of premium,
• Accidental death benefit rider,
• Return of premiums

Drawback: The plan does not have any Critical Illness Rider, either as an in-built feature or as a rider.

  4. ICICI Prudential iProtect Smart - ICICI Prudential offers a single term insurance plan. Hence, the policy is quite comprehensive. Additionally, the iProtectSmart policy is quite affordable and comes with a variety of in-built features -

• Life Stage Benefit Option
• Waiver of Premium in case of total permanent disability
• Zero Cost Term Plan Option

In terms of riders, the iProtect Smart offers -

• Accidental Death Benefit
• Critical Illness Benefit

Drawback: The insurer recently suffered a dip in overall operational proficiency. Hence, purchasing a term insurance policy from this insurer might not be the best move.

  5. Tata AIA Maha Raksha Supreme - Maha Raksha Supreme is one of the most popular and affordable policies available that comes with features like -

• Waiver of Premiums
• Critical Illness Rider,
• Total Permanent Disability Rider
• Critical Illness Benefit
• Accidental Death Benefit

Drawback: The plan is available only to individuals with an annual income exceeding ₹15 lakhs and provides coverage of ₹2 crores or more.

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Conclusion

When you contract a severe ailment like Diabetes, being worried about your family’s future is only natural. Subsequently, you need to avail yourself of affordable options like term insurance for diabetics that will act as your income replacement for your family. However, before making a purchase, make sure to take note of the possible counteroffers and restrictions that the insurer may impose. This will help you stay better prepared for the outcomes.