- Date : 18/08/2023
- Read: 3 mins
A look at the new diabetic-friendly life term plan by Bajaj Allianz, its features, and whether should you buy it.
Buying a life insurance policy can be difficult if you have a pre-existing condition like diabetes. Your policy application is likely to be rejected, or accepted with a heavy premium amount. The new Bajaj Allianz term insurance for diabetics is tailor-made for the segment. It has a higher premium, compared to regular term plans. However, premiums cannot be the only criteria for judging any insurance policy.
Life Insurance for Diabetics
7.7 crore Indian adults suffer from the health issue of diabetes, as per a WHO finding. These people struggle to buy life insurance policies due to their pre-existing conditions. However, they can now buy the Bajaj Allianz Life Diabetic Term Plan Sub 8 HbA1c policy. Let us look at some of the features of this life insurance policy for diabetics,
It is a pure term policy with no maturity benefits. Nominees receive the sum assured in the event of the death of the policyholder
Only pre-diabetics and diabetics with an HbA1c level of up to 8 can buy this policy. Pre-diabetics are people whose HbA1c levels are between 5.7 and 6.4. People with 6.5 or more are diabetic
The allowable entry age for this policy is 30 to 60 years
The policy tenure can be between 5 and 25 years
The sum assured is Rs 25 lakh or more, with no upper limit
The premium for this policy can be paid yearly, half-yearly, quarterly or monthly
The sum assured is the higher of i) 10 times annualised premium, ii) 105% of total premium payments till death or iii) the actual sum assured
New diabetic life term plan, Buy or Skip?
Whether you should buy this policy or not would depend on your need for a policy. If you must buy a term policy, your chances of getting a regular term policy are only 30%. But when you apply for the Bajaj Allianz diabetes term plan, your chances of getting the policy approved are the same as they would be for a non-diabetic applying for a regular plan.
The second consideration is the premium. The premium for this plan, as per the Bajaj diabetes term plan premium calculator, is 1.75 to 2 times higher than a regular plan. If the premium is very steep for you, you may not choose to buy this policy. The downside would be that you will remain uninsured. If you are an active earning member of your family, your death will expose the family to financial difficulties. Life insurance, albeit at a higher premium, will protect the surviving family from financial hardship, in the case of the policyholder's untimely death.
So, for diabetics, this Bajaj Allianz life insurance policy can be the best bet for remaining insured and having a decent life sum assured cover at all times.
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Disclaimer: This article is intended for general information purposes only and should not be construed as insurance or investment or tax or legal advice. You should separately obtain independent advice when making decisions in these areas.