Diabetes is a chronic illness that affects a lot of people worldwide. It is an illness caused by multiple lifestyle issues that could be fatal. So, it is vital to obtain a life insurance policy to assist you in covering the costs in the event that you are diagnosed with it.
The simplest and least expensive type of life insurance is a term plan. The main advantage is that policyholders can access a sizable sum assured at reasonable premium costs.
A diabetic individual could question their ability to purchase a term insurance plan for diabetes, though. Is there a possibility that their application could be denied for medical reasons? The good news is that, as long as you meet certain requirements, you can still get a term plan even if you have diabetes.
Are Term Plans Different for Diabetics?
A term plan is a pure protection strategy that provides both the policyholder and the life assured with a life insurance policy with death benefits. You can get a term plan that includes diabetes coverage to provide financial support. In the worst-case scenario, the beneficiaries will receive the death benefit if the policyholder passes away.
Given that the person is more likely to develop additional ailments in the future, the premium for a term plan with diabetes coverage may be higher.
A term insurance plan calculator is a tool you may use online to determine the amount of coverage required based on your needs.
Advantages of Term Insurance for a Diabetic
The likelihood of spending more on healthcare also rises as the condition, in its latter stages, may result in other major health issues.
When diabetes is detected, a term plan can assist in managing the expense of healthcare. In addition, there are additional advantages of term plans for diabetes, which are detailed below:
- Ensures financial security for your family through the death benefit
- May cover your medical costs and other associated costs.
- Will enable you to reduce your medical expenses
- Adaptable premium payment options
- Provides tax advantages under the income tax act.
How Does Your Term Plan Get Affected by the Type of Diabetes?
There are typically two varieties of diabetes, and each type has a unique effect on the term plan.
A larger risk applies to those who have been diagnosed with Type 1 diabetes. It usually occurs at an early age and is quite challenging to control. Due to the risks involved, the term plan’s premiums in these situations will be greater than usual.
As this kind of diabetes typically develops later in life, the body has less time to become affected. Because it is simple to manage, the premiums for a term plan of this kind are lower. But, a person may have to pay a greater premium if they need to use insulin to treat their diabetes.
Things to Think About When Purchasing a Term Plan for a Diabetic
If it is under control, approval will be simple.
If your illness has been under control for the last six months, you are eligible for term insurance regardless of whether you have Type 1 or Type 2 diabetes. Your treatment strategy may also affect your chances of obtaining a term insurance policy with lower premium costs. Insurance companies typically see those who have it under control with a good exercise routine, diet, or oral medicine positively compared to those who need insulin to do so.
Hemoglobin A1c (HbA1c) testing is a factor in determining the degree of diabetes. It gauges the typical blood sugar control levels throughout the previous two to three months.
Although an A1c level of 7 is ideal, a level of less than 7.5 often denotes that the condition is under control. Yet people with levels as high as 8.5 might also be able to purchase a term insurance plan for diabetes.
The factors indicated above will be used to calculate the level of risk you represent to the insurer. The premium could be more expensive than what would be given to someone who is otherwise healthy. A term insurance calculator is an easy-to-use tool to check the amount of premium you would have to pay.