Gestational Diabetes: Life Insurance Complications And Considerations

Life insurance is a crucial step in financial planning, especially for those with health conditions like gestational diabetes. This condition, which affects about 18% of pregnancies, often occurs in women without a history of diabetes and typically resolves after childbirth. However, it can have implications for life insurance due to the increased risk of developing Type 2 diabetes later in life. While some insurers may penalise women with a history of gestational diabetes through higher premiums or postponed coverage, others may offer standard or even preferred rates, especially if the condition is well-managed. The key to securing the best rates lies in choosing the right insurer and working with an independent agent who can navigate the complex landscape of underwriting criteria and find the most suitable policies.

Life insurance companies' stance on gestational diabetes

The impact of gestational diabetes on life insurance premiums is a controversial topic. While some sources indicate that a history of gestational diabetes may result in higher insurance rates, others suggest that it may not affect insurance rates at all. However, it is important to note that the stance of life insurance companies on this matter may vary.

In a study conducted by Anna S.Y. Zheng, Tony O’Leary, and Robert G. Moses, ten Australian life insurance companies with a combined market share of over 94% were surveyed. The results revealed that all the companies considered a history of gestational diabetes as a factor in their underwriting process. However, in a proposed scenario involving a 40-year-old woman with a history of gestational diabetes during her second pregnancy ten years ago, all the companies indicated that she would qualify for standard life and disability insurance policies at regular rates, without any additional premium. This suggests that in the absence of other health risk factors, a history of gestational diabetes may not necessarily lead to higher insurance rates in Australia.

On the other hand, some life insurance companies in other countries may take a different approach. For example, certain companies in the United States view gestational diabetes similarly to Type 2 diabetes, which could result in higher insurance rates or additional premiums. This discrepancy in the treatment of gestational diabetes by insurance companies highlights the importance of working with independent agents or brokers who can navigate the complex landscape of insurance underwriting guidelines.

When evaluating the impact of gestational diabetes on life insurance rates, insurance underwriters consider various risk factors. These include the presence of other health conditions, family history of diabetes, overall health profile, and lifestyle choices. Underwriters assess these factors to determine the likelihood of an individual developing Type 2 diabetes later in life, as gestational diabetes is considered a risk factor for future diabetes.

While the specific criteria and weightage given to each factor may vary across insurance companies, some common considerations include blood glucose levels, HbA1c levels, compliance with treatment plans, and the presence of any diabetes-related complications. Additionally, factors such as age, weight, smoking status, occupation, and hobbies can also influence the insurance rates offered to individuals with a history of gestational diabetes.

In summary, the impact of gestational diabetes on life insurance rates depends on a multitude of factors, and insurance companies may have differing stances on this matter. Working with knowledgeable and independent agents or brokers who understand the complexities of diabetes and life insurance is crucial in obtaining the most suitable coverage at affordable rates.

Likelihood of developing type 2 diabetes later in life

Developing gestational diabetes can increase a woman's likelihood of developing type 2 diabetes later in life. This is because gestational diabetes is associated with a 50% chance of developing type 2 diabetes within 20 years of delivery. This risk is influenced by several factors, including the presence of pre-existing insulin resistance, which can progress and worsen over time. The risk of developing gestational diabetes also increases with each pregnancy, which may further elevate the likelihood of type 2 diabetes in the future.

To reduce the risk of developing type 2 diabetes after gestational diabetes, it is recommended to:

• Breastfeed your baby, as it can help with weight loss and improve glucose metabolism, insulin sensitivity, and lipid metabolism.
• Maintain a healthy weight by making dietary modifications, incorporating regular physical activity, and adopting a more active lifestyle.
• Follow a healthy diet that includes non-starchy vegetables, lean protein, whole grains, and unsweetened drinks, while minimising processed foods, trans fats, and sugary drinks.
• Monitor your blood sugar levels and consult a healthcare provider if the levels cannot be managed effectively.

Family history of diabetes

A family history of diabetes is a crucial factor in determining life insurance premiums. Insurers scrutinise an individual's medical history, including past illnesses, injuries, and ongoing health conditions, to accurately assess risk. While your personal health profile is a significant factor, a history of diabetes in your family can increase the likelihood of developing the condition and impact your insurance rates.

• Hereditary Risk: Diabetes, particularly type 2 diabetes, can be passed down through generations. Insurers take these genetic risks into account when setting premiums because diabetes could potentially shorten your lifespan.
• Average Life Expectancy: Insurers also consider the average lifespan of your close relatives. If your family members tend to live longer lives, your risk of dying prematurely is lower, which can result in a more affordable premium.
• Underwriting Process: When applying for life insurance, you will be asked detailed questions about your personal and family medical history. This includes information about any immediate family members diagnosed with diabetes before a certain age.
• Impact on Premiums: A family history of diabetes may lead to higher insurance premiums. The exact increase will depend on other factors, such as your overall health, lifestyle choices, and the presence of other critical illnesses in your family history.
• Honesty and Transparency: It is crucial to be transparent about your family's medical history when applying for life insurance. Failing to disclose this information could lead to claim rejections or policy cancellation in the future.
• Genetic Testing: Genetic testing can be used to identify specific forms of diabetes, such as monogenic diabetes, which is caused by changes in a single gene. However, genetic testing for type 2 diabetes is not yet clinically useful due to the complexity of the condition and the involvement of multiple genes.
• Risk Reduction: If you have a family history of diabetes, you can take steps to reduce your risk of developing the condition. This includes maintaining a healthy weight, staying active, adopting a plant-based diet, and regular health check-ups.

Other factors that affect life insurance rates

Life insurance underwriters consider several factors when determining an individual's rates. Here are some key factors beyond gestational diabetes that can influence the cost of life insurance:

• Overall Health: The insurance company will evaluate your overall health, including blood pressure, cholesterol levels, and any other serious medical concerns. Addressing controllable health conditions and maintaining good health can help manage premiums.
• Height and Weight: The insurance company will consider your height and weight to determine if they fall within a healthy range. Being overweight or obese can increase your premiums as it is associated with various health risks.
• Smoking and Drinking: Smoking and alcohol consumption are considered risky behaviours that can negatively impact your health. Life insurance companies typically charge higher rates for smokers and may also take into account the frequency of nicotine use. Similarly, frequent alcohol consumption can be a factor in determining your rates.
• Family Medical History: A history of serious medical conditions in your family, such as cancer, cardiovascular disease, or diabetes, can increase your premiums. Insurance companies view this as a higher risk, especially if these conditions have contributed to premature deaths in your family.
• Occupation and Hobbies: Engaging in high-risk activities or having a dangerous occupation can result in higher insurance rates. This includes hobbies like motorsport, skydiving, or scuba diving, and occupations with a lot of occupational hazards, such as mining or policing.
• Age and Gender: Age is a significant factor, as younger individuals generally pay lower premiums due to their longer life expectancy and lower risk of illness. Additionally, women often pay less for life insurance than men, as they have a higher average life expectancy.

Getting affordable life insurance coverage

Life insurance is a contract in which a policyholder pays premiums in exchange for a lump-sum death benefit that may be paid to the policyholder's beneficiaries. The cost of life insurance depends on several factors, such as age, medical history, and lifestyle. The coverage amount and policy type also play a significant role in determining life insurance costs.

Choose term life insurance

Term life insurance is the simplest and cheapest type of policy and it’s sufficient for most people. It lasts a set number of years and is designed to cover you while you have financial dependents or obligations, such as paying off a mortgage or raising children. If you die during the term, your beneficiaries will receive a payout.

Opt to take the medical exam

If you’re relatively healthy, it’s worth picking a policy that requires a life insurance medical exam. Without these details, the insurer has less information to go on and the insurance tends to be more expensive.

Buy a policy as soon as you need it

Life insurance companies reserve their best rates for young, healthy applicants, so it’s a good idea to buy coverage as early as possible. As you age, your risk of running into health issues goes up, and your life expectancy goes down.

Buy only as much coverage as you can comfortably afford

Calculate how much life insurance you need and get quotes for that amount from multiple insurers. Then choose a policy that fits your budget or, if needed, reduce your coverage to the highest amount you can get for the premium you can afford.

Compare rates from different companies

With more than 800 life insurance companies in the U.S., it's a good idea to let insurers compete for your business. Comparing quotes from multiple insurers is one of the most effective ways to find an affordable life insurance policy.

Work with an independent agent

An independent agent will ask you all the relevant questions to give them a good picture of your health history and steer you away from companies that charge higher rates for specific conditions.

Lose weight

As a pregnant applicant, the insurance company will use different charts to determine what a healthy weight range is for you. If you’re not in a healthy weight range for your height and pregnancy term, then you might end up paying more for your insurance coverage.

Stop smoking

Smokers pay more for life insurance because of the health risks associated with tobacco use. If you smoke, you can expect to pay much higher premiums for your insurance coverage.

Skip riders you don’t need

When you apply for life insurance, you might have the option to add extra features to your policy known as “riders”. While some riders are free, others will raise your overall premium.

Ask about discounts for paying your premium annually

With most companies, you can opt to pay your insurance premiums monthly, quarterly, semi-annually or annually. But some insurers charge an additional service fee to policyholders who choose frequent payments. If you can afford the higher upfront payment, you could save up to 5% by paying your premium once or twice a year.

Frequently asked questions