Diabetes can be a cause for worry especially when it comes to qualifying for life insurance policy. However, with some conditions met, diabetics can indeed get coverage, in some cases, even at affordable rates.
Life insurance is a crucial way to secure your family’s financial future in the event that something happens to you. The problem is that not everybody qualifies for insurance. Insurance companies consider health as a major criteria for deciding this as pre-existing conditions can affect your survival rates.
Diabetes will not immediately cancel out your eligibility for insurance policy. However, it all depends on how well-controlled your diabetes is as well as other health history. Life insurance for diabetics is available, and the rates are probably less expensive than you imagine.
Read on to learn about the different life insurance policy options available to you and how diabetes affects your qualification and premium rates.
Why does diabetes affect life insurance policy?
Whether an insurance company will give you coverage or not depends on the risk that they will have to pay out your death benefit. This risk is calculated through something called an underwriting process.
The underwriting process usually includes a medical exam, a health and lifestyle-related questionnaire as well as checks on your medical history.
Having a pre-existing condition like diabetes increases the chances of severe outcomes like heart failure, kidney failure, infections, etc., which can increase the chances of your death. This in turn means that there’s greater risk for the insurer that they will have to pay the death benefit. This is why diabetes can make it hard to get life insurance.
However, diabetes varies in type and severity for different people. Type 2 diabetes is milder than Type 1 diabetes. Your age of diagnosis also plays a huge role. If you have a well-managed treatment plan, you can keep your diabetes in check and avoid complications. Insurance companies consider all these factors while deciding your eligibility.
A number of insurance companies have policy plans specifically designed for diabetics. It is important to be aware of your options to get coverage at the most affordable rates. You can compare different companies and find the right coverage on websites such as PolicyScout.
Factors that affect coverage cost for diabetics
Your coverage cost is calculated based on the risk that the insurers may have to pay the death benefit. This risk is calculated based on the following factors:
Type of diabetes
Type 2 diabetes is the most common type of diabetes – around 90-95% of diabetics have it. It is usually diagnosed after the age of 45. With adequate lifestyle changes like diet and exercise, as well as medication in some cases, diabetes can be kept in control.
Type 2 diabetes is milder and is therefore considered a lesser risk for insurers. Hence, you will have better policy options available, and you may qualify for coverage at more affordable rates. Matt Schmidt of Diabetes Life Solutions states “People with Type 2 diabetes will have an easier time qualifying for life insurance. Life insurance for type 2 diabetics will also be less expensive compared to rates for Type 1 Diabetes individuals.”
Type 1 diabetes, on the other hand, makes it difficult to qualify for coverage. This is the insulin-dependent variant that is typically diagnosed at a very early age. It is harder to manage and comes with greater health complications compared to Type 2 diabetes. Life insurance companies will simply view a person with Type 1 diabetes as a higher risk.
Age at the time of diagnosis
Diabetes increases health complications over time. This is why if your diabetes is detected at an early age, your chances of qualification for coverage reduce. Late-onset diabetes – diabetes detected after the age of 50 – typically means lower premium rates.
Blood sugar and glucose levels
These are measures of your diabetes’ severity. A1C levels higher than 10 can cancel your chances of qualification altogether. Lower A1C levels as well as daily glucose levels in the normal range means your diabetes is well managed. This increases your coverage eligibility and makes policies more affordable.
Medical and family history
Insurance companies also check your past medical data to check for diabetes-related outcomes like infections, blood-pressure issues, etc. If you’ve had frequent irregularities, that can reduce your eligibility or increase your premium rates. If your family has a history of health complications, that can also make insurance costlier for you.
Diabetes management
If you have a consistent treatment plan, your chances for getting affordable insurance coverage increase. The type of treatment plan also matters. If you are medication-dependent, that can mean higher premium rates. On the other hand, if your diabetes is under control just through lifestyle changes, you can get more affordable premium rates.
Types of life insurance policies for diabetics
Whole life insurance
These policies cover you for life as long as you don’t let them lapse. While they cost more, they also accrue cash value over a period of time.
Term life insurance
These policies are effective only for a particular ‘term’ or a period of time. If you die outside that period, they do not pay out the death benefit. They’re cheaper but require reapplication after the term ends.
Guaranteed life insurance
These policies do not involve a medical exam to decide eligibility. This can be a great choice for you if you have severe diabetes or Type 1 diabetes. However, they come with much lower death benefits and higher premium rates can be favorable, nevertheless. Well known providers such as AARP Burial Insurance, Gerber Life, and Mutual of Omaha offer guaranteed acceptance policies. These policies should be viewed as a last resort.
How to get the best insurance coverage for diabetics?
Keep your diabetes in control
This can be a crucial factor in determining your eligibility for coverage. Get medical guidance to change your diet and lifestyle choices to keep your diabetes in check. Monitor your blood glucose and sugar levels regularly and get the right medical treatment if required. Create a regular fitness regimen as insurance companies love seeing applicants who exercise on a regular basis. The more well-managed your diabetes, lower your premium rates will be.
Compare different policy options
Shop around to see the different policy options offered by different insurance companies. Get the help of a financial advisor to learn about the best options available for your specific situation. Some insurers have specific plans for diabetics. Knowledge and awareness can make an enormous difference to your policy cost.
Melissa Thompson from Diabetes 365 notes “It’s extremely important to work with agents that specialize in working with those who live with diabetes. Applying to the wrong company that charges higher premiums could lead to you overpaying by thousands of dollars over the lifetime of the policy. Also, do not feel like you have to complete medical examination to be approved. They are several no medical exam life insurance options for diabetics.”
The bottom line
As a diabetic, you can get life insurance policies and cover your family financially. Take the necessary steps to keep your diabetes under control and compare different options to qualify for the most affordable life insurance policy.
