Diabetes patients are strongly advised to acquire term plans since it provides insurance coverage to the insurer from the moment the policy is purchased. There is no waiting period, in contrast to certain other insurance products.
Key features of Term Insurance for Diabetics
The most remarkable aspect of a term insurance plan is its affordability. The ideal term plan provides a life insurance policy for the sum assured, which is a predetermined amount, according to the duration of the policy.
- Simple to buy
A term plan is simple to purchase, just like internet purchases of clothing or books. Comparatively speaking, purchasing a term plan is simpler than purchasing other financial arrangements and investment plans. There are two methods for purchasing term insurance:
- Offline: Through an intermediary, such as a broker, insurance agent etc.
- Online: Online shopping for essential necessities is similar to online shopping for term insurance. All you need is an internet connection and a digital screen.
- Payment flexibility
The policyholder has the option of deciding when to make the required payment. You can select an annual, semi-annual, quarterly, weekly, or monthly term policy.
- Additional riders
Every term insurance policy offers extra riders in the event of illness, disability, or injury. These add-ons offer extended periods in conjunction with the primary plan and are subject to additional fees.
- The option of staggered claims payout
In the case of a death claim payout, every term plan provides a lump sum benefit. Maintaining it could be challenging if the wrong people invested the money or if greedy members took the money for granted. Alternatively, the quantity might be so huge that maintaining it will be challenging in and of itself.
- Amount of fixed coverage
You can buy a life insurance policy for sums ranging from thousands to lakhs. Once a term policy’s coverage amount is determined, it cannot be changed. But, it is not an issue if you can calculate the amount according to the term policy precisely and use it to your advantage. As a result, do your research and consult your insurer for guidance.
- Coverage for non-working spouses
The provision that enables you to add your spouse as a beneficiary to your plan is present in all the term plans. Make sure to select this option because it will enable the plan’s benefits to reach your family and protect them from any financial difficulties in the event of an unfortunate incident.
- Short-term protection
In essence, term policy coverage is for brief periods of time. It can span a period of thirty years. Lower costs are associated with temporary coverage. As a result, as already mentioned, be sure to talk to your insurer and pay attention and learn about the characteristics a particular policy provides.
Reasons for Diabetics to Get Term Insurance
The following are the main rationales for diabetics to purchase term insurance:
- Selecting a Critical Illness Rider
Amputation of a limb due to high blood sugar and diabetic retinopathy are two major prevalent issues that a diabetic person may have. The majority of term life insurance for type 1 diabetes offers riders or extra coverage for these issues. One might broaden the coverage of their term insurance policy by adding additional coverage.
- Coverage for Life Insurance
A diabetic person’s life expectancy is low, and their risk of dying is higher. The life insurance option is the best one for the diabetic insured.
- Cost-effective Plan
Term plans do not require a considerable initial investment. Term insurance is accessible at incredibly low premium rates based on your annual income, level of diabetes, and age. For those with diabetes, term insurance is more affordable than other types of life insurance.
- Tax Benefits
Policyholders may claim tax benefits under Section 80C of the Income Tax Act of 1961, although a yearly benefit cap is 1,50,000 rupees. After receiving the death benefits, the nominee may also take advantage of the tax benefits offered by section 10D of the IT Act.
Overall, term life insurance for type 1 diabetes patients offers financial security and peace of mind to individuals and their families in the event of unexpected circumstances.