The Hindu Business Line : Sheltered from worry

For someone free of any malady, striking either a health insurance or life insurance deal is a cakewalk. With the entry of private players and heightened competition, insurance companies are falling over one another to grab that elusive customer in the race for market share.

But what if the person looking for a life insurance plan or mediclaim policy happens to be diabetic? Will the insurance companies display the same enthusiasm?

Well, companies may not exactly steer clear of such individuals, but the policy-seeker might be expected to cough up more money.

For starters, the policy will be priced higher. A 25-year-old diabetic, for instance, would pay a higher premium than a non-diabetic policyholder of the same age.

According to MetLife Insurance, the premium would depend on the age of the policyholder, the age at which diabetes set in, the type of treatment taken and compliance to the treatment. When the diabetes is compounded by added conditions such as high blood pressure or smoking, to name a couple of complications, the policy could be deferred or even declined.

ICICI Prudential also offers insurance cover to diabetics, although at a higher cost. However, the insurability of the individual depends on the assessment of the underwriter.

So, if you are diabetic, it would be best to inform the insurance company at the time of the medical test that you are under treatment. The reason is simple: if you conceal your condition and it comes to light at a later date, it would tantamount to non-disclosure of a pre-existing condition and you run risk of the policy being terminated. One could also tag on a critical illness rider, which entails paying a fixed sum in case the policyholder is diagnosed with a critical illness as specified by the company. Heart attacks and kidney failure, for instance, figure among critical illnesses.

But this add-on feature is not available to diabetics. However, ICICI Prudential says that there might be exceptions, depending on the underwriter's assessment, and the company would settle such claims whenever they arise.

MetLife states that if the policyholder is declared diabetic at the application stage itself, the critical illness rider will be declined right away.

Coming to health insurance, a diabetic would qualify for a policy, though any claim arising out of a pre-existing condition, such as diabetes, will not be reimbursed. However, if the policyholder decides to renew his health insurance policy for a specified period, which may vary between four and six years depending on the insurance company, then the company might cover him/her for the pre-existing condition.

Should you opt for such a plan, do check whether hospitalisation expenses for cardiac and kidney disorders, both closely related to diabetes, qualify for reimbursement. If these are considered part of the pre-existing condition, then the related expenses will not be reimbursed.

Since it is near impossible to predict the onset of diabetes, it would pay to be safe rather than be sorry at a later date. Since heredity plays a major role, an individual with a family history of diabetes might find it useful to draw an insurance policy at a relatively young age when the relevant medical parameters are all under check. And, the lower premiums that youngsters have to pay would be the perfect sweetener.

Picture by Sandeep Saxena

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