Typical premium loading for diabetes is 75-100%

Published in Mint on, Jun 11 2013, Written by Kapil Mehta

What is a double accident life insurance policy?
—Preetam

Insurers have some way to go in making their product propositions and advertisements unambiguous. For example, double accident benefit could mean a benefit paid if you have an accident twice.
Actually the phrase “double accident life insurance” refers to those insurances where double the sum assured is paid if the insured person dies due to an accident. Fewer than 10% of deaths take place due to accidents and so adding on an additional benefit due to accidental death is cost effective for both the insurer and the insured.

There was a fire in my house recently and along with various possessions, the papers for my life insurance policy also got destroyed. Is there a way I can get a duplicate copy of the papers? If so, what is the procedure?
—Sofia

The insurer will issue you a duplicate policy. The specific requirements vary by insurer but essentially consist of proof that the policy was destroyed and an indemnity that protects the insurer from misuse of a lost policy.
The proof of policy destruction could be parts of the burnt policy or evidence of fire. The indemnity can be provided in a standard form provided by the insurer. Some insurers waive the requirement for an indemnity if you can prove that the document was destroyed by fire (or in a quaint exception—eaten by white ants).

I am diabetic and I applied for an online term insurance with an insurance company. They are insisting on a 100% increase in premium. Should I try another insurer or pay the loaded premium? Is it a standard practice to load premiums by 100% in case of diabetics? If I apply with another insurer, can I hope to get a lower rate now?
—Keshavnath

The premium loading depends upon the type of diabetes. Loadings are generally higher for insulin-dependent diabetics. The typical premium loading for diabetics is between 75% and 150%.
In that context, the 100% loading is not unusual. I would suggest you pay the loaded premium because you may not save money by going to another insurer.
A way for diabetics to enhance their death benefit cost-effectively is to purchase a top-up accidental death rider. Accidental death insurance is cheap and does not depend upon your health condition.

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