Life Insurance With Diabetes: Getting A Mortgage

If you have diabetes, you may be concerned about how your condition will impact your ability to get mortgage insurance. While it is more difficult to get insurance for type 1 diabetes than type 2, it is not impossible. People with diabetes will likely pay higher premiums than those without the condition, as insurers view diabetics as higher-risk. However, if you can show that your diabetes is being managed properly, you may be able to get a lower premium. When applying for mortgage protection insurance, insurers will consider various factors, including your age, the type of diabetes you have, the severity of your condition, and how well you are managing it. They may also look at other health factors such as your cholesterol levels, blood pressure, and BMI. It is important to be thorough when filling out the application and providing detailed information about your condition and management.

Type 1 vs Type 2 diabetes

Type 1 and Type 2 diabetes are both serious conditions that can lead to dangerous health complications if left untreated. However, the two types have distinct differences in terms of causes, symptoms, treatment, and management. Understanding these differences is crucial for effective management and seeking appropriate insurance options.

Type 1 diabetes is an autoimmune disorder where the body's immune system attacks the insulin-producing cells in the pancreas, resulting in a complete lack of insulin production. This condition affects about 1.3 million people in the US and often develops in childhood or adolescence, but it can occur at any age. People with Type 1 diabetes require lifelong insulin therapy through injections, an insulin pump, or an inhaled form of insulin. It is important to carefully monitor blood sugar levels and make lifestyle changes, such as eating a healthy diet and managing stress.

On the other hand, Type 2 diabetes is primarily characterised by insulin resistance, where the body's cells do not respond effectively to insulin, and there is a gradual decline in insulin production. This type usually develops in adulthood but is increasingly seen in younger individuals. Management often involves lifestyle changes, such as diet, exercise, and oral medications. In some cases, insulin therapy may be required if the body stops producing insulin altogether. Type 2 diabetes accounts for the majority of diabetes cases globally, with around 90-95% of cases.

When it comes to life insurance, having diabetes, especially Type 1, can make finding the best policy more challenging and expensive. Life insurance companies determine premiums based on life expectancy, and people with chronic conditions like diabetes may have higher rates due to an increased risk of an earlier or sudden death. However, it is still possible for individuals with well-managed diabetes to obtain life insurance and find affordable rates. Some companies, such as John Hancock, offer specific programs tailored to diabetics, providing benefits like discounts on healthy food and virtual meetings with diabetes experts.

In the context of mortgage protection insurance, diabetes adds complexity to the process of securing coverage. Insurance providers consider factors such as age of diagnosis, HbA1c levels, and any complications or additional health risk factors. While it may be more challenging, it is not impossible for individuals with diabetes to obtain mortgage protection insurance. Seeking advice from a specialist advisor and thoroughly completing diabetes questionnaires are important steps in this process.

The impact of diabetes management

The management of diabetes can have a significant impact on a person's ability to obtain mortgage life insurance and the cost of their premiums. While diabetes is a pre-existing condition, it does not make a person ineligible for life insurance. However, the effectiveness of their diabetes management will determine the ease of obtaining insurance and the cost of premiums.

Factors affecting insurance approval and premiums

Several factors are considered when evaluating a person with diabetes for life insurance:

• Type of diabetes: Type 1 diabetes is generally considered riskier than Type 2 due to the need for frequent blood sugar monitoring and insulin therapy. Type 2 diabetes can often be managed through lifestyle changes, such as diet and exercise, making it a lower risk in the eyes of insurers.
• Age of diagnosis: The age at which diabetes is diagnosed also plays a role in the evaluation process. A diagnosis at a younger age is considered higher risk as it indicates prolonged exposure to potential complications from the disease.
• HbA1c levels: Insurers look at HbA1c levels to assess blood sugar control. Higher HbA1c levels may result in postponed or refused applications for mortgage protection.
• Complications and other health factors: Any complications arising from diabetes or additional health risk factors, such as smoking, high cholesterol, high blood pressure, or obesity, can impact eligibility and the cost of mortgage protection.

Tips for improving approval odds

To improve the chances of approval and secure more favourable rates, individuals with diabetes can:

• Consistently manage their condition: Adhering to prescribed medications, regularly monitoring blood sugar levels, and maintaining a healthy diet and exercise regimen can demonstrate active control of diabetes.
• Control related health factors: Monitoring and managing associated health issues, such as high cholesterol, hypertension, obesity, and heart disease, can lower the overall risk profile.
• Avoid smoking: Smoking can exacerbate health issues, especially for diabetics. Quitting smoking can significantly improve approval odds and result in lower premiums.
• Work with a broker: Brokers have relationships with multiple insurance carriers and can act as advocates throughout the process, helping individuals find the best coverage options.

Available insurance options

Individuals with well-managed diabetes have a range of insurance options available to them:

• Term life insurance: This type of insurance is temporary and typically lasts 10 to 40 years. It is generally more affordable and can be converted into permanent life insurance if needed.
• Whole life insurance: This is a permanent coverage option that accumulates cash value and offers the potential for dividends. However, it tends to be more expensive due to the increased health risks associated with diabetes.
• Guaranteed issue life insurance: If individuals are unable to qualify for traditional life insurance, guaranteed issue life insurance may be an alternative. This type of policy does not require answering health-related questions or undergoing a medical examination. However, premiums are significantly higher due to the increased risk assumed by the insurance company.

The role of specialist brokers

Specialist brokers have a deep understanding of the insurance market and can interpret complex policy details, ensuring that their clients get the best coverage at a reasonable cost. They work independently and are not tied to specific insurance companies, allowing them to offer a broader range of insurance options. This independence enables them to represent the client's interests and ensure they receive competitive pricing and the most suitable coverage for their needs.

In the context of mortgage protection for individuals with diabetes, specialist brokers can help navigate the challenges posed by the condition. They can advise on the management of the client's diabetes, including lifestyle changes, and guide them through the process of improving their control over blood sugar levels.

Additionally, specialist brokers can assist in completing the necessary diabetes questionnaires thoroughly and accurately. They can also help individuals with Type 1 Diabetes explore alternative options, such as Cancer Only Cover, as they may not be eligible for Income Protection or Specified Illness Cover.

When choosing a specialist broker, it is essential to consider their expertise, reputation, and responsiveness in providing customer support. It is also crucial to ensure that they have the necessary regulatory licenses and certifications.

The application process

To apply, you will need to provide medical details of your condition and treatment. You will also need to fill out a GP questionnaire, and sometimes a PMAR (Private Medical Attendant's Report).

Underwriters will assess the information you provide on the application form and may request further information from your doctor or ask you to attend a medical test or tele-interview.

Factors Affecting Your Application

Several factors will affect your application for mortgage protection insurance if you have diabetes:

• Type of Diabetes: It is more difficult to get insurance for Type 1 diabetes than Type 2 due to the higher risks involved and the fact that Type 1 generally occurs earlier in life. Type 1 diabetes requires insulin injections to control blood sugar levels. Type 2 diabetes can often be controlled by diet and/or medication.
• Age and Severity: The age at which you were diagnosed and the severity of your condition will also be considered. The longer you have had diabetes and the more severe your condition is, the higher your premium is likely to be.
• Health Factors: Other health factors such as cardiovascular risk factors (e.g. being overweight, smoking, high blood pressure, high cholesterol), HbA1c readings, and any diabetes-related complications (e.g. eye disorders, kidney issues, circulatory issues) will also be taken into account.
• Treatment: If you can show that your diabetes is being managed properly through treatment and lifestyle changes, this may help lower your premium cost.

Available insurance types

There are several types of life insurance available for people with diabetes. The most suitable option will depend on factors such as the severity of your condition, your age, and your budget. Here are some of the options:

• Term life insurance: This is the cheapest and simplest type of policy, and it lasts for a set number of years (e.g. 10, 15, or 20 years). You will need to fill out a health questionnaire and undergo a medical exam, so this option is best for those who have their diabetes under control.
• Whole life insurance: This type of policy offers lifelong coverage, and a portion of your premium is invested each month to build up a cash value. While this option can be more expensive, it may be suitable for those with permanent insurance needs.
• Simplified issue or guaranteed issue life insurance: These policies do not require a medical exam, making them a good choice for those with advanced or uncontrolled diabetes. However, they are usually only available to people over 50, and the coverage amounts are typically low.
• Group life insurance: If your employer offers group life insurance as a benefit, this could be a good option. You won't need to take a medical exam, but the coverage amount may be limited.
• Diabetes-specific programs: Some insurance companies offer programs specifically tailored to people with diabetes. For example, John Hancock's Aspire program offers benefits like discounts on healthy foods and virtual meetings with diabetes experts.

Frequently asked questions