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Term Insurance for Diabetics: Medical Tests, Eligibility, and Coverage
28 Sept 2026
Securing a financial safety net for your family is an important decision to make. If you happen to have high blood sugar levels, you could be thinking that it is impossible to get a life cover. People in India have a misconception that any pre-existing disease gets rejected immediately by the insurers. However, the truth is otherwise.
Indian insurers now understand diabetes better than ever before and offer life insurance to diabetics on a daily basis. Having diabetes need not stop you from protecting your family. This guide will let you know how term plans work for diabetics, what are the health checks required, and how you can get the best deal for your money.
Understanding Term Insurance for Diabetics in India
Term insurance is one of the simplest and most affordable life insurance products available. It provides a lump sum payment to one’s nominee in the unfortunate case of the policyholder’s demise within the coverage period. When applying for term insurance for diabetics, Indian insurers do not reject applications on the spot. They take into account the control of blood sugar levels and the discipline of the applicant. Here are some factors that insurance companies consider before approving a term plan for a diabetic person:
Type of Diabetes
Type 2 diabetes is the most common form of the disease in India. Insurers usually offer standard plans for people suffering from type 2 diabetes. Policies for type 1 diabetes and gestational diabetes are also available, with certain specific terms and conditions.
Age of Diagnosis
Delayed diagnosis means reduced risks of long-term complications. Therefore, getting diagnosed late makes it easier for insurers to cover such cases.
HbA1c Level
The HbA1c test measures the average blood sugar level in the body. This figure is the single most important criterion that insurers use to determine the application.
Lifestyle and Discipline
One’s lifestyle and the level of discipline plays a vital role in getting term insurance for diabetics. Maintaining a healthy diet, taking medications on time, and exercising regularly show positive traits of discipline and determination in the policyholder.
Other Diseases
Besides diabetes, one’s risk for hypertension, high cholesterol, and kidney diseases also affects the likelihood of getting approved.
Medical Tests for Term Insurance: What to Expect?
During the application process, the insurance company can request a series of medical tests for term insurance to determine the blood sugar level and the overall health of the applicant. Usually, the insurance company offers a list of a few diagnostic centers where the application can get their tests done. Sometimes, the company even sends a technician to the applicant’s home to take samples for the tests. A few of the most common blood sugar tests for term insurance are discussed below.
Here are a few general health tests that insurers also recommend:
HbA1c (Glycated Hemoglobin) Test
This is the most critical test for anyone applying for life insurance with diabetes. HbA1c represents the average blood sugar levels in the body over the last 2-3 months.
Fasting Blood Sugar (FBS)
This test measures the body’s blood sugar level in a fasting state, i.e., 8-12 hours after one’s last meal.
Postprandial Blood Sugar (PPBS)
The PPBS test measures the blood sugar level in a non-fasting state, i.e., 2 hours after one’s meal.
Other General Health-Related Tests
Since diabetes can damage other organs in the body, the insurers also perform a few general health tests to ascertain the working of the kidneys, heart, and other organs. The most common tests are as follows:
- Lipid Profile Test – Measures the levels of bad and good cholesterol in the body.
- Kidney Function Test (KFT) – KFT assesses the kidney’s ability to filter waste from the body.
- Urine Routine Test—The test detects the presence of proteins and sugar in the urine.
- ECG – An electrocardiogram is a simple and painless test that assesses the overall health of the heart.
How Insurers Determine Your Eligibility and Premiums
Insurance companies perform a detailed analysis of one’s application before approving it. Based on the results of the medical tests and one’s health profile, the application falls into any of the following three categories.
Standard Rates
If one’s HbA1c levels are normal and there are no other chronic diseases, then the application can get approved at standard rates. Such applicants are eligible for the same rates as healthy people without diabetes.
Sub-Standard Rates (Premium Loading)
If one’s blood sugar levels are slightly higher than the normal range (for example, the HbA1c level is more than 6.5% but less than 8%), then the application can get approved but with sub-standard rates. In such cases, the application gets approved, but the person will have to pay a little more as compared to the standard premium. Substandard rates are also called premium loading.
Specialized or Counter Offer
If one’s blood sugar levels are extremely high (HbA1c level is more than 8%), the application either gets approved with a lower sum assured or is deferred for 3-6 months. During the deferral period, the applicant must show notable improvement in their health before resubmitting the application.
Eligibility criteria, loading charges, terms and conditions, and the sum assured are subject to the insurer’s underwriting norms and guidelines.
Practical Tips to Help You Get Approved Term Insurance for Diabetics
With the right preparations, it becomes easy to get term insurance for people with diabetes at reasonable rates. Here are a few practical tips to keep in mind while applying for term insurance for diabetics in India.
Straightforward Communication
While filling out the application form, make sure to provide accurate and honest information. Misrepresenting or failing to disclose relevant information can lead to claim rejections later.
Control Your Sugar Levels
Try to keep your blood sugar levels under control for at least 3-6 months before applying for life insurance. Better health control reflects positively on one’s application for term insurance for diabetics.
Documented Proof of Lifestyle
It is essential to keep documented evidence of one’s lifestyle and diet. It will be necessary to produce such evidence during the underwriting process.
Avoid Tobacco Products
Smoking and other tobacco products severely impact one’s chances of getting approved for life insurance. Getting involved in such activities also increases the premium that one would have to pay.
Riders for Extra Coverage
A term insurance policy provides pure risk coverage to the nominee in case of the policyholder’s demise during the coverage period. However, it is possible to add certain additional covers, called riders, to a standard term plan to receive extra benefits. Here are a few such riders.
Critical Illness Rider
This rider offers a lump sum payment directly to the policyholder in case of a critical illness as specified in the rider policy. The cover can help finance the treatment of a critical illness, or one can use the funds to meet daily expenditures.
Disability Rider
If an accident causes permanent total or partial disability, the disability rider provides a monthly or lump sum payment as a disability benefit. Apart from that, the rider provides an option to waive the future premiums.
Waiver of Premium Rider
In the case of a critical illness or total and permanent disability, this rider covers the future premium payment.
Depending on the underwriting norms of the insurance company, the rider coverage, additional costs, and terms and conditions may vary.
Tax Benefits of Term Insurance Policies in India
A term insurance policy not only offers a financial safety net for one’s family in case of an unfortunate incident but also provides certain tax benefits. Here are the tax benefits provided by the Income Tax Act, 2025.
Deduction on Premium Paid Under Section 123
Under section 123 of the Income Tax Act 2025, a taxpayer who pays the life insurance premium for self, spouse, or children is entitled to a deduction. This tax benefit is available under the old tax regime and has specific eligibility conditions.
Deduction for Health Riders Under Section 126
If one purchases a health rider, then one can claim a deduction on the premium amount of the rider. This benefit is also available under the old tax regime and has specific eligibility conditions.
Tax Benefit for Nominee on Maturity Under Section 11
The death benefit sum assured is generally tax-free under section 11 of the Income Tax Act, 2025, subject to specific statutory conditions.
Tax rules and regulations are subject to change, and the benefits will depend on the tax regime, income slab, and other factors. It is advisable to consult a tax expert for detailed information.
Conclusion
Having diabetes need not prevent one from protecting one’s family. With the right preparations before one applies for a term insurance policy, one can get the most affordable cover for one’s family. One must focus on one’s health before applying. Additionally, one must be thorough and accurate while providing information about medical history to the insurer. It is also essential to compare and contrast the offers from various insurers and choose the most fitting option.
