I’m 40 and have a family history of diabetes. How much term insurance coverage can I get?

I’m a 40-year-old individual with a family history of diabetes. I’m concerned about the financial impact this could have on my family. Can you provide information on critical illness coverage and how it specifically applies to diabetes? Are there any specific policy options available for individuals with a family history of diabetes? Also, I already have an existing insurance policy, but I’m interested in updating it to ensure adequate coverage, considering my new health condition. Besides, can I buy a diabetes term plan that offers financial protection in case of any complications related to my condition?

Name withheld

Reply by Avdhesh Gupta, Appointed Actuary, Bajaj Allianz Life Insurance.

You’re right about critical illnesses taking a financial toll on families. And it’s a smart move on your part to assess your insurance coverage and consider if it’s good enough for your specific requirements.

Let’s begin by deliberating the relevance of a critical illness cover in the context of diabetes. Since diabetes is not a life-threatening medical condition by itself, it is typically not covered by critical illness insurance covers. So, does that mean that a critical illness cover may not be useful to you? The answer is no. While diabetes itself may be manageable, it may lead to some life-threatening medical conditions like kidney failure, stroke, heart disease, etc. So, if you have a family history of diabetes and/or suffer from the condition yourself, a critical illness cover offers you valuable financial protection through coverage for potentially life-threatening medical conditions associated with diabetes.

Irrespective of you or your family being affected by diabetes, the occurrence of critical illnesses cannot be ruled out. Critical Illnesses are often unforeseen, and you can opt for an insurance cover that either has an in-built critical insurance cover or can be purchased as an add-on based on your and your family's needs.

When you apply for a life insurance policy or a health insurance plan, you must disclose your family's and your medical history to the insurer. This helps insurance providers assess the risks associated with each applicant more accurately. So, in your case, you will have to disclose your family's medical history of diabetes and your pre-existing condition, if any.

Some insurers may offer coverage for the pre-existing condition, while others may not, depending on the policy exclusions and/or their underwriting policy. You can get more clarity about the specifics of the coverage by reading the policy’s inclusions and exclusions or by contacting the insurance provider.

You can opt for a term plan even if you or your family have diabetes. There is a Diabetic Term Plan Sub 8 HbA1c plan. It provides death cover. This product has been specifically designed per the insurance needs of pre-diabetics and Type 2 diabetics with HbA1c levels up to 8%. You will receive life insurance coverage ranging from Rs 25 lakh to Rs 1 crore for a term of up to 25 years or till the age of 75. Suppose you actively manage your condition by maintaining a healthy lifestyle and keeping your HbA1c levels in check. In that case, you can even receive a reduction in premiums up to 10% on the policy anniversary.

You’ve already taken a step in the right direction by trying to understand your options. Being well informed about adequate and comprehensive insurance covers will help you in the long term through financial security and peace of mind.

(Views expressed by the investment expert are his/her own. E-mail us your investment queries at askmoneytoday@intoday.com. We will get your queries answered by our panel of experts.)