Tuesday , October 24 2017

Diabetes Insurance

There are so many insurance companies in the market that offer insurance to healthy people. But, when it comes to people having diabetes then very few companies are available that offer medical cover to diabetic patients.

Type 1 & Type 2 Diabetes Insurance is a kind of Insurance policy which provides medical cover to people already suffering from Type 1 & Type 2 diabetes. People suffering from Type 2 diabetes are covered under this policy. And, incase of hospitalisation the insurance company is liable to bear the entire cost of hospitalisation up to sum assured.

HOW DIABETIC INSURANCE IS DIFFERENT FROM NORMAL HEALTH INSURANCE?

POINT OF DIFFERENCE DIABETIC INSURANCE NORMAL HEATH INSURANCE
COVERAGE Covers Type 1 & Type 2 Diabetes from Day 1 Does not cover diabetes from day 1
SUM ASSURED Starts from 2Lac and goes up to 10Lac Starts from 1Lac & goes up to 1Crore
MEDICAL CHECK-UP Compulsory for all age groups Compulsory after 45years
HYPERTENSION It is also at times covered Not covered
PREMIUM High Low
CO-PAYMENT OPTION AVAILABLE Yes No
NO CLAIM BONUS (NCB) No, but companies like Apollo give Reward point facility for maintaining good health Yes

 WHAT ARE THE BENEFITS OF TAKING Type 1 & type 2 DIABETIC INSURANCE?

Before buying the Diabetic insurance one should go through following key features:

  • It covers Type 1 & Type 2 Diabetes from Day 1, few companies cover hypertension as well
  • Premium for Type 1 & Type 2 Diabetic Insurance is at least 25% higher as compared to normal plan
  • Day care procedures include those diseases for which 24 hours of hospitalisation are not required, due to technological advancement. Example cataract, dialysis etc.
  • Domiciliary Treatment cost is also covered by Insurance Company

Domiciliary treatment is that in which the patient is treated at home. As the patient is in critical situation and cannot be shifted to hospital/ if the hospital states that no beds are available


  • Pre & Post hospitalisation medical expenses are also covered up to a certain limit. Number of days vary company to company
  • If situation occurs for any organ donation then apart from the insured, donor expenses are also borne by the company
  • Diabetic plans come with an option of Co-payment. In this individual will bear a fixed percentage of hospitalisation cost and rest will be paid by Insurance company. Example 20%, 30% or higher. Benefit of taking co-payment option is that higher the percentage borne by client less will be the premium cost
  • Emergency ambulance cover is provided by Insurance up to a specific amount. Example up to INR 2000
  • Portability option is available but only to Type 1 & Type 2 diabetic plan. One cannot port diabetic policy into a comprehensive health insurance plan and vice-versa.

WHAT IS THE TAX BENEFIT OF TAKING MEDICAL INSURANCE?

Tax benefit is provided under Section 80(d). Limit for tax benefit is as follows:

  • If individual takes Insurance policy for self then the amount paid as premium will be treated as saving up to INR 25000, but if you are a senior citizen then the rebate is INR 30000
  • Also, if you take this policy for your parents then you can take rebate of INR 25000. However, if your parents are senior citizen then limit of the rebate is INR 30000 separately

However, if the policy is taken for yourself and your parents who are senior citizens then total maximum rebate available under this section is INR 55000.

 WHAT IS THE ELIGIBILITY CRITERIA FOR TAKING?

  • Type 1 & Type 2 Diabetic Insurance can be taken between 18-65 years. For Company like “Star health care” age limit is 25- 65 years
  • Type 1 & Type 2 Diabetic Insurance Covers Type 1 & Type 2 diabetes only
  • Type 1 & Type 2 Diabetic Insurance can be taken for sum assured of INR 1 Lac and goes up to 10 Lac
  • Medical test is mandatory




WHAT ARE THE EXCLUSIONS?

  • Waiting period of 30 days except any accidental injury. Although there is company like Max health insurance which provides medical cover from day 1
  • Any Pre-existing diseases/conditions (EXCEPT DIABETES OR HYPERTENSION) will not be covered from day 1. Those diseases can be covered if the company has some waiting period clause
  • 2 years exclusion for specific diseases like cataract, hernia, hysterectomy, joint replacement etc.
  • HIV or AIDS
  • Non-allopathic treatment
  • Mental disorder
  • Cosmetic surgery or weight control treatments

LIST COMPANIES AND SOME ACCEPT IT ON TEST BASIS WITH EXCLUSION

  • Apollo Munich Health insurance
  • Star Health insurance

 

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