Welcome to this edition of ICCBizNews, where we delve into the realm of critical illness coverage and its significance in safeguarding your well-being.
Question: As an individual aged 40 with a family history of diabetes, the potential financial ramifications for my family concern me. Could you furnish insights regarding critical illness coverage, particularly in relation to diabetes? Are there specialized policy choices tailored for those with a diabetic family history? Additionally, my current insurance policy warrants an update to adequately cover my new health circumstance. Furthermore, I'm intrigued by the prospect of acquiring a diabetes term plan that extends financial security in the event of complications stemming from my condition.
Reply provided by Avdhesh Gupta, Appointed Actuary at Bajaj Allianz Life Insurance.
Your recognition of the financial strain caused by critical ailments on families is well-placed. Evaluating your insurance coverage and its alignment with your precise needs is a prudent step to take.
Let's initiate our discussion by exploring the pertinence of a critical illness policy in relation to diabetes. As diabetes, in isolation, might not be categorized as an immediately life-threatening medical condition, it's typically excluded from the scope of critical illness insurance plans. However, does this imply that a critical illness policy holds no value for you? The response is in the negative. While diabetes itself can be managed, it has the potential to give rise to life-threatening medical situations such as kidney failure, stroke, and heart disease. Therefore, if you have a family history of diabetes or are personally affected by it, a critical illness cover extends crucial financial security by encompassing potentially life-threatening health issues associated with diabetes.
Regardless of whether diabetes affects you or your family, the emergence of critical illnesses remains a possibility that cannot be disregarded. Critical illnesses often manifest unexpectedly, prompting the consideration of an insurance policy equipped with inherent critical illness coverage or the option to augment it as an additional feature, tailored to your individual and familial requirements.
Upon submission of an application for a life insurance policy or a health insurance scheme, it is imperative to divulge both your personal medical history and that of your family to the insurance company. This step serves to enable insurance providers to conduct a more precise evaluation of the associated risks for each applicant. In your situation, it becomes essential to provide information about your family's medical history concerning diabetes, as well as any prevailing medical conditions you might have.
Certain insurance companies might extend coverage for your pre-existing condition, while others could choose to exclude it, contingent upon the policy's stipulations and their underwriting guidelines. For a comprehensive understanding of the precise extent of coverage, one can peruse the inclusions and exclusions outlined in the policy or alternatively engage directly with the insurance provider for further clarification.
Even if you or your family members have diabetes, the possibility of choosing a term plan remains open. A specialized offering, known as the Diabetic Term Plan Sub 8 HbA1c plan, is available, providing coverage in the event of death. This particular product has been meticulously crafted to cater to the insurance requirements of individuals with pre-diabetes or Type 2 diabetes, encompassing HbA1c levels up to 8%. The life insurance coverage offered spans from Rs 25 lakh to Rs 1 crore, extending over a term of up to 25 years or until the age of 75.
Should you proactively manage your health condition by upholding a wholesome lifestyle and effectively regulating your HbA1c levels, there exists the potential to garner a premium reduction of up to 10% on the policy's anniversary.
Your endeavor to comprehend the available options is indeed a commendable stride in the right direction. Equipping yourself with comprehensive insights into suitable insurance coverage will inevitably contribute to your long-term well-being by ensuring financial stability and tranquility of mind.
