Term Insurance for Diabetics 

Table of Content

1. How Does Term Insurance Work?

2. Why is Term Insurance Important for Diabetics?

3. Features of Term Insurance for Diabetics

4. How Do Types of Diabetes Affect Term Insurance?

5. When Should Diabetics Buy a Term Insurance Plan?

6. Factors to Consider While Buying A Term Insurance Plan for Diabetics

7. Common Term Insurance Riders** for Diabetics

8. Documents Required for Buying Term Insurance for Diabetics

9. FAQs on Term Insurance For Diabetics

Term insurance for diabetics is a pure life protection policy that offers a lump sum payment (death benefit) in case the person insured passes away within the policy term. It does not generate savings, investment returns, or make maturity payouts, differing from endowment or ULIP policies.

The main elements are the sum assured (paid on death), the policy term (coverage period), the nominee, and the premium frequency (monthly, quarterly, annually).

Some term plans for diabetics offer flexibility in payout modes, including a lump sum in full, income over several years, or a combination of the two. Since it is purely risk coverage, term insurance for diabetic persons is reasonably priced, even for comprehensive coverage.

For diabetics, underwriting is more stringent, as insurers evaluate medical history, existing control, and other risk factors that may influence premium loadings and acceptance.

How Does Term Insurance Work?

Term insurance for diabetics is a pure protection plan that provides financial security in the event of the policyholder's death. At application, you choose the sum assured, policy term, and premium payment frequency (monthly, quarterly, annually).

Insurers evaluate your eligibility based on factors such as age, health (including whether you have diabetes), lifestyle, and income. For instance, HDFC Life utilises medical tests and reports to assess risk for pre-existing conditions, such as diabetes accurately.

You pay fixed premiums regularly to keep the policy active. If you pass away during the policy term, your nominee receives the death benefit. Standard term insurance for diabetic patients typically does not offer maturity benefits, although variants such as “return of premium” are available at a higher cost.

Choosing HDFC Life means benefiting from a claim settlement ratio of 99.68%^## in FY 2024-25, which reassures you that genuine claims are likely to be settled swiftly.

Why is Term Insurance Important for Diabetics?

Diabetics often face additional financial challenges due to higher health risks and medical costs. Term insurance for diabetics provides a cost-effective safety net to protect dependents in the event of premature death, while helping to manage debts, future goals, and medical uncertainties.

• Financial Protection for Families of Diabetics

Diabetes increases the risk of early death due to complications like heart disease or kidney failure, making life expectancy less predictable. According to recent studies, the age-adjusted prevalence of diabetes in India is expected to rise from 9% in 2011 to 10.8% by 2045. 

Without adequate insurance, families may struggle to cover everyday expenses, repay loans, or fund children’s education if the earning member passes away. A term plan for diabetics with a lump-sum payout can help maintain their standard of living, covering expenses such as mortgages, school fees, and groceries, so that the loss of income doesn’t lead to a steep drop in lifestyle. For diabetics, who face increased medical risks, this financial cushion is particularly vital.

• Cost-Effective Coverage for Diabetics

Term insurance for diabetics provides cost-effective coverage, offering high protection at significantly lower premiums compared to ULIPs or endowment policies.  .

This affordability is crucial for diabetics, who already spend considerable amounts on regular medicines and tests, making term insurance for diabetic patients a practical solution that maximises coverage while minimising financial strain.

• Covering Diabetes Linked Health Complications

Term insurance for diabetic persons remains available in India, but premiums are generally higher and medical tests are often required due to elevated health risks. About 100 million Indians are expected to be living with diabetes, with common complications including heart disease, stroke, kidney damage, neuropathy, and vision problems.

These chronic conditions drive up healthcare costs; nearly 38% of Indian households with diabetic members face catastrophic health expenditure. Term insurance for diabetics ensures that, in the event of the insured’s death, families can manage medical bills and long-term care expenses without depleting their savings.

• Peace of Mind for Diabetics and Their Families

Living with diabetes often means worrying about future health issues, rising medical costs, and what will happen to loved ones if something goes wrong. A term insurance plan helps ease that worry. 

A term plan for diabetics assures you that even if your health deteriorates, your family will have funds for essentials, milestones like education or marriage, or even elder care. That assurance leads to mental calmness, knowing that your financial responsibilities have a safety net in place.

Features of Term Insurance for Diabetics

Below is a table summarising the main features of term insurance for diabetic persons, what each means, and the benefits offered:

How Do Types of Diabetes Affect Term Insurance?

Different types of diabetes have varied risk profiles. Insurers evaluate Type 1, Type 2, and gestational diabetes differently, calculating premiums based on factors such as age, diabetes type, lifestyle habits, blood sugar control, and overall health.

• Impact of Type 1 Diabetes on Term Insurance

Type 1 diabetes, which typically commences in earlier years and mandates lifelong insulin treatment, is viewed as higher risk by insurers. Type 1 applicants tend to receive higher premiums and more stringent underwriting, including comprehensive medical exams.

Even with tightly regulated blood glucose levels, insurers may impose additional loading. Early intervention, regular follow-up, and a lack of complications improve approval chances, although affordability is more restricted than for term insurance for diabetic patients.

Example: A 25-year-old with Type 1 diabetes might pay 50–70% more than a non-diabetic peer, even if their blood sugar is well-controlled, highlighting why term insurance for diabetics is essential.

• Impact of Type 2 Diabetes on Term Insurance

Type 2 diabetes is much more prevalent in India and is usually controllable by lifestyle, oral agents, or insulin, if needed. If blood glucose (e.g., HbA1c) and comorbidities (such as hypertension) are controlled, insurers are more likely to treat Type 2 applicants leniently.

• Premiums are greater than for non-diabetics, but far less than for Type 1.

• Most influential factors that enhance eligibility:

• Age at diagnosis (the later, the better)

• Consistent HbA1c results

• No complications (e.g., kidney disease, cardiovascular disease)

For instance, a 45-year-old with Type 2 diabetes and HbA1c 6.5% could secure a standard term plan for diabetics with slightly higher premiums than a non-diabetic. Many committed term insurance for diabetic persons cover Type 2 diabetics up to a specified HbA1c threshold.

• Impact of Gestational Diabetes on Term Insurance

Gestational diabetes (that occurs during pregnancy) is usually transient and heals after childbirth. According to the International Diabetes Federation (IDF), the prevalence of diabetes among adults in India is estimated at 10.5% in 2024, corresponding to approximately 89.8 million adults, underscoring the importance of monitoring all forms of diabetes. 

Insurers can perceive gestational diabetes less adversely if post-pregnancy sugar levels are normal. Follow-up medical reports may be required to offer favourable terms. Since it’s temporary, most insurers do not treat it as a permanent risk factor. 

Term insurance for diabetics with a gestational history is generally easier to obtain than for Type 1 or poorly controlled Type 2, making it a viable term plan for diabetics.

When Should Diabetics Buy a Term Insurance Plan?

Individuals with diabetes face higher underwriting scrutiny. According to a study published in The Lancet Diabetes & Endocrinology, 44% of people aged 15 and older with diabetes are unaware they have the condition. 

Buying term insurance early, soon after diagnosis, with well-controlled sugar levels and no complications, helps secure lower premiums. Delaying increases the risk of age-related or disease-related progression, raising costs or causing rejection.

• Buying Term Insurance Soon After Diabetes Diagnosis

The initial years following diagnosis are the most opportune time to buy coverage. Insurers generally view newly diagnosed diabetics as lower risk because a lot of complications have not developed yet. 

Premiums can still carry a load for diabetics, but they are often significantly cheaper than when buying years down the line, when complications may already have developed. Early buying ensures one gets covered before disease progression minimises choices.

• Buying Term Insurance with Stable Sugar Levels

Insurers primarily rely on test results, such as HbA1c, fasting blood sugar (FBS), and postprandial blood sugar (PPBS), when evaluating diabetic applicants. When these readings are consistently within reasonable control, it indicates a lower risk, which generally results in smoother approval and favourable premium rates. 

On the other hand, uncontrolled or unstable sugar levels indicate a higher medical risk, calling for higher loadings or restrictions. Regular logs, doctor-verified records, and medical reports add to the profile. Purchasing when sugar control is reasonable raises both acceptability odds and affordability.

• Buying Term Insurance Before Diabetic Complications

Chronic diabetes usually results in secondary ailments like cardiovascular disease, renal damage, neuropathy, or eye damage. Insurers consider these as independent risk factors, thereby enhancing underwriting complexity. 

After complications have set in, not only do premiums increase significantly, but coverage may also be refused or come with substantial exclusions. Buying a policy before complications arise ensures that diabetics receive lower premiums and better terms. Delaying until damage has commenced means with compound disadvantage.

• Buying Term Insurance at a Younger Age with Diabetes

Insurers evaluate risk based on age and health status. Young diabetics (in their 20s or early 30s) generally get lower premiums and more options. Early application improves chances of approval for term life insurance for diabetics or the best term life insurance for diabetics.

Older applicants even when diabetes is well-controlled carry a greater risk due to age-related deterioration and longer length of disease exposure, generating higher premium loads or restriction of policy options. Applying early helps lock in lower premiums and ensures eligibility before both age and disease progression work against you.

Factors to Consider While Buying A Term Insurance Plan for Diabetics

Individuals with diabetes face higher scrutiny during underwriting, so selecting the right term plan requires careful consideration of key factors. A good plan balances coverage, affordability, riders, health profile, and future risks. Understanding these factors helps individuals with diabetes secure optimal financial protection for themselves and their families.

• Type and Duration of Diabetes

Type 1, Type 2, and gestational diabetes impact eligibility and premiums differently. The longer you’ve lived with diabetes, or if its control has been poor, the greater the risk from the insurer’s perspective. A recent diagnosis with controlled sugar levels usually results in more favourable terms.

• Blood Sugar and HbA1c Control

Insurers closely review HbA1c and blood sugar levels to assess risk. Well-managed sugar levels lower risk and thus reduce premium loadings. Uncontrolled or fluctuating levels increase underwriting risk, leading to higher premiums or exclusions. Maintaining consistent medical records and doctors' reports enhances your application.

• Presence of Diabetes Related Complications

Complications like kidney disease (nephropathy), nerve damage (neuropathy), cardiovascular issues, or diabetic retinopathy significantly affect both acceptance and cost. Applicants with complications may face higher premiums or restrictions. Early purchase before complications exist ensures better affordability and full coverage.

• Age at the Time of Policy Purchase

Younger diabetics generally get lower premiums and more flexible coverage. Insurers consider your age and how long you have had diabetes together. Delaying until older age means facing both age-related risks and disease progression, which increases costs and may reduce options.

• Choice of Riders Specific to Diabetics

Riders such as Critical Illness, Hospital Cash, or Premium Waiver provide additional protection against health risks associated with diabetes. Choosing the right riders ensures your term insurance for diabetic patients adequately covers high-cost treatments or medical emergencies that the base death benefit may not fully address. 

While adding riders can slightly increase premiums, they enhance overall coverage, offering financial security tailored to the unique needs of individuals with diabetes.

Common Term Insurance Riders** for Diabetics

Riders** are optional add-ons that enhance your base term insurance plan, giving extra protection against specific risks. For diabetics who face higher vulnerability to health complications, these riders can significantly strengthen financial security. While adding riders increases the premium slightly, it provides comprehensive coverage and peace of mind.

Documents Required for Buying Term Insurance for Diabetics

Insurers require additional documentation for individuals with diabetes to assess risk accurately. Submitting complete and accurate documents speeds up the underwriting process, clarifies premiums, and may reduce rejections or loading.

• Personal Identification Documents

Standard documents, such as the Aadhaar Card, PAN Card, Passport, or Voter ID, are required to verify your identity, address, and age. Accurate personal IDs are the baseline before medical evaluation begins.

• Medical History and Doctor Reports

You’ll need to present a detailed medical history, including the date of diagnosis, type of diabetes (Type 1, Type 2, or gestational), current medications, and any existing complications. Doctor’s reports or certificates confirming your status help insurers assess risk and set appropriate premiums.

• Recent Laboratory Test Reports

HbA1c, FBS, PPBS, lipid profile, and kidney function tests. Improves approval chances for term insurance for diabetic persons. These help insurers understand how well your diabetes is managed and forecast the risk of complications. Recent results improve the chances of a favourable premium and quicker approval.

• Lifestyle and Risk Factor Declaration

Smoking, alcohol, physical activity, and diet help assess risk accurately for term insurance for diabetics. These factors significantly influence diabetic management and overall health risk. Honest disclosure helps avoid surprises during claim time or underwriting (and may improve premium terms).

Overall, managing diabetes effectively can help secure better term insurance for diabetics. Plans like HDFC Life’s term insurance for diabetic patients offer tailored options that balance coverage and affordability. Early diagnosis and stable sugar levels improve approval odds and lower premiums, making a term plan for diabetics a practical choice for financial protection.

FAQs on Term Insurance For Diabetics

1. Can a diabetic person get term insurance?

Yes. Many insurers in India provide term insurance to people with diabetes. Acceptance depends on the type of diabetes, the level of management (e.g., HbA1c levels), the age of diagnosis, the presence of complications, and the degree of insulin dependence. While premiums may be loaded and underwriting stricter, complete denial is not automatic.

2. Which health insurance is best in India for diabetes patients?

The best plan depends on individual needs: look for insurers whose underwriting is relatively favourable for diabetics (e.g., those who accept Type 2 with a stable HbA1c), options for riders, a strong claim settlement record, and a flexible sum assured. It helps to compare multiple insurers and read policy documents carefully, especially about inclusion/excludes related to diabetic complications.

3. How much does a premium increase for a person who is diabetic?

Premiums for individuals with diabetes are generally higher than those for non-diabetics. The loading (extra charge) depends on multiple factors, including type of diabetes, control (HbA1c), age, and complications, and may range widely (in many cases, 10-50% or more above standard rates). Note: exact numbers vary by insurer and plan.

4. How to lower life insurance premiums with diabetics?

You can improve your profile and reduce premium loading by maintaining consistent sugar control (good HbA1c), avoiding or managing complications, applying at a younger age, adopting healthy lifestyle changes (diet, exercise), being transparent in medical declarations, and choosing sum assured and riders appropriate to your needs without overburdening cost.

5. What questions do insurers ask people with diabetes during an application?

General questions include: type of diabetes, date of diagnosis, treatment regimen (insulin/oral meds/diet), latest HbA1c, fasting and postprandial sugar values, presence of complications (kidney, eye, heart, neuropathy), lifestyle habits (smoking, alcohol, physical activity), other existing medical conditions, family medical history, and past medical records.