Bajaj Allianz launches term plan for type 2 diabetics, pre-diabetics — premiums, benefits & more

"Until now, there were normal term plans available which could be bought by diabetic customers, however, the chances of issuance were extremely low. This is mainly because the regular term plans are not priced by taking into account the risk involved with diabetes. Also, diabetics tend to have a higher likelihood of comorbidities, which seriously hampers their chances of getting a regular term cover," Garg told CNBC-TV18.com.

Notably, nearly 8.9 percent of the Indian population above the age of 18 years either have type 2 diabetes or are pre-diabetic. However, when it comes to insurance, reportedly a significant number of India’s population who are diagnosed with diabetes are currently under-insured. With diabetes being termed as a chronic disease, those diagnosed with it find it challenging to get comprehensive life cover to financially secure their family’s needs.

However, with launch of the new product, Bajaj Allianz believes it will be able to help several Indians secure their family’s long-term financial plans.

Step 1: Choose the sum assured.

Step 2: Choose the policy term (policy term and premium payment term are equal under this product). Customers will have to pay premiums throughout the policy term to continue life cover.

Step 3: Choose the premium payment frequency. Depending on the convenience, one can choose to pay premiums either monthly or annually.

Step 4: Answer the health questionnaire as per the health status. The premium will be based on the current age, gender, sum assured, HbA1c level, smoker status, health status, policy term, premium payment frequency, etc.

Death benefit  or benefit payable on death of the life assured during the policy term: If the policyholder dies during the policy term, provided the policy is in force, the user's nominee or legal heir (as chosen by the customer at inception) will receive the sum assured. The policy will terminate on the death of the life assured. Sum assured on death is defined as higher of:

a) 10 times annualised premium.

b) 105 percent of total premiums paid till date of death.

Maturity Benefit: Since this is a pure term insurance product, no benefit shall be payable on survival till maturity. The policy will terminate on the maturity date.

Policyholders will have the option to change the prevailing premium payment frequency at any policy anniversary during the policy term, subject to the availability then, of the premium payment frequency and the minimum premium allowed under the product, Bajaj Allianz said.