Life Insurance And Type 2 Diabetes: What's The Verdict?

Life insurance eligibility is largely based on an individual's current health and past medical history. People with type 2 diabetes may assume that they are ineligible for life insurance or that their premium will be too expensive. However, it is possible for people with type 2 diabetes to obtain life insurance and find a rate that fits their budget. The likelihood of approval varies depending on health and financial factors, how well they manage their health, and whether they have type 1 or type 2 diabetes.

How does type 2 diabetes affect life insurance rates?

Type 2 diabetes is considered a lower risk by life insurance companies than Type 1 diabetes, especially if it can be managed with lifestyle changes or medication. Since Type 2 diabetes is often diagnosed in adulthood, insurance companies will view you more favourably than those with Type 1 diabetes. If you are otherwise healthy and have not had any complications, having Type 2 diabetes should not prevent you from getting a policy. However, it will affect your risk rating and cost more.

The likelihood of your approval for life insurance varies depending on various health and financial factors, how well you manage your health, and whether you have Type 1 or Type 2 diabetes. People with diabetes can get life insurance but are unlikely to qualify for the cheapest rates.

Underwriters evaluate each diabetes case individually, considering factors such as the age at which the disease started, the type of treatment received, how well the condition is managed, and any related complications. After the underwriter reviews your application, they assign you a risk class. Risk classes determine the final price of your policy. The most common risk classifications are:

• Preferred: Above-average health and best pricing
• Standard: Average health and reasonable pricing
• Substandard: Below-average health and higher-than-average pricing

Underwriters often perceive Type 2 diabetes as less risky than Type 1 for the following reasons:

• Late-onset and lifestyle: Type 2 diabetes often develops later in life. Because lifestyle factors such as obesity, poor diet, and lack of exercise are known to trigger this condition, you can manage or even reverse it with lifestyle changes and medication.
• Management: Type 2 diabetes is typically easier to manage because it doesn't necessarily require insulin. Many people can control their blood sugar levels with oral medication, diet, and exercise alone.
• Insulin production: In Type 2 diabetes, the body still produces insulin, but it either doesn't make enough or the body doesn't use it efficiently. While this isn't ideal, it's generally considered less risky than Type 1.

The best approach is to find life insurance carriers that specialize in high-risk health or special risk factors such as diabetes. You may also wish to look for insurance carriers that offer "clinical underwriting", which is an evaluation process that will look at your overall health and not just specific health risk factors.

The most affordable life insurance policy will be available to you if your diabetes is under control. If you have lower A1C levels and low glucose levels, and you lead a healthy lifestyle, your rates will be more affordable. It also helps if you regularly visit the doctor, take your medication as prescribed, keep a healthy body weight, and have regular eye exams.

People with Type 2 diabetes will have more companies to choose from, and will have a plethora of no-medical-exam policies available to them. Life insurance companies tend to view people with Type 2 diabetes as 'average' risks, and most of the time, the applicant will receive an insurance rating similar to a person without diabetes at all. Carriers have evolved their underwriting guidelines, and will now offer Standard, and even Preferred ratings to applicants, if they qualify medically.

What are the best life insurance companies for type 2 diabetics?

Type 2 diabetes is considered a lower risk by life insurance companies, especially if it can be managed with lifestyle changes or medication. However, it can still be challenging to find affordable life insurance as a diabetic. Here is a list of some of the best life insurance companies for type 2 diabetics:

• John Hancock Life Insurance: John Hancock offers the Aspire program, tailored to people with type 1 or type 2 diabetes, which provides a variety of unique benefits and a potential discount of up to 25% on policies. The company has also received very few complaints and has strong financial stability.
• Banner Life Insurance: Banner is a great option for people with well-managed type 2 diabetes, as they may qualify for Banner's standard plus underwriting class. The company offers term life insurance with maximum term lengths of 50 years, which is higher than most competitors, and the option to stack coverage with term riders.
• Mutual of Omaha: Mutual of Omaha offers no-medical-exam life insurance for people aged 45 and above, including those with diabetes who have struggled to qualify for coverage elsewhere. They also offer term, whole life, and universal life insurance policies for people with diabetes who can qualify through full underwriting.
• Pacific Life Insurance: Pacific Life has the fewest complaints among the top life insurance companies for diabetics and is highly ranked for customer satisfaction. They offer a broad selection of policies, including term life, whole life, universal life, indexed universal life, and variable universal life insurance.
• AIG: AIG offers flexible term lengths for short- or long-term goals, with coverage limits that can be customized to your needs. Their Quality of Life Flex Term policy includes living benefits riders at no extra cost.
• Prudential: Prudential is a good option for people with type 2 diabetes who have a complicated medical history, as they use blood sugar credits to offset the higher cost of other health conditions. They also offer no-exam term life insurance for people with diabetes, with coverage amounts up to $500,000.
• Ethos Life: Ethos offers term and whole life insurance options with no medical exam required, which could mean more affordable coverage for people with diabetes. Their application process is completely online and provides guaranteed approval for senior diabetics.
• Nationwide: Nationwide offers competitive pricing on whole life insurance for diabetics, with the option to pay off the policy in 20 years. Healthy type 2 diabetics may qualify for whole life insurance without a medical exam if the coverage amount is $100,000 or less.

Can type 2 diabetics get whole life insurance?

Type 2 diabetics can get whole life insurance, but it may be more difficult to obtain than for non-diabetics, and the policy will likely be more expensive. The ease of the process and the policies available depend on the age of diagnosis, how the diabetes is controlled, and any related health complications.

For instance, someone who is diagnosed with type 2 diabetes at a later age and controls it with diet and exercise alone will likely qualify for the best life insurance rates. However, if you depend on insulin or have had any diabetes-related complications, your coverage options may be more limited and expensive.

To qualify for whole life insurance, most companies require proof that your diabetes is well-managed and that you are under a doctor's care. This can include providing medical reports, blood sugar readings, and details of your current diet and exercise regime.

The cost of whole life insurance for type 2 diabetics will depend on several health-related factors, including:

• Age of diagnosis
• Additional health risk factors
• Current height and weight
• Medication
• Blood sugar levels
• A1C levels

It is recommended that type 2 diabetics work with an independent broker or agent who can help them find the best coverage options and competitive rates.

What are the challenges of getting life insurance with type 2 diabetes?

People with type 2 diabetes can face several challenges when applying for life insurance. Here are some of the key challenges to be aware of:

Higher Premiums

Underwriters consider type 2 diabetes a risk factor, which can lead to higher premiums. The increase in premiums is due to the potential complications associated with diabetes, such as heart disease, kidney damage, and nerve damage. The cost of coverage will depend on how well the diabetes is managed and the applicant's overall health.

Limited Policy Options

The type of diabetes plays a significant role in the life insurance application process. Type 2 diabetes is often viewed as a lower risk compared to type 1, especially if it is managed through lifestyle changes or medication. However, if there are complications or insulin dependence, the number of policy options may be more limited, and the application process may become more challenging.

Medical Examinations and Questionnaires

Life insurance companies typically require comprehensive information about an applicant's health when diabetes is involved. This can include medical records, details about diabetes management, and completion of questionnaires. Some companies may also request additional medical examinations, such as blood tests and physical exams, to assess the applicant's current health status.

Rejection and Higher Risk Ratings

People with type 2 diabetes may face rejection or higher risk ratings from certain insurance companies. This is because diabetes is considered a pre-existing condition, and insurers assess the likelihood of future health issues and claims. The presence of other health issues in addition to diabetes can further complicate the application process and increase the likelihood of rejection.

Impact of Age of Diagnosis

The age at which type 2 diabetes is diagnosed can also impact life insurance applications. A later-in-life diagnosis is generally viewed more favourably, as it means fewer years for the disease to impact the body and health. Earlier onset of the disease may lead to higher risk ratings and more limited options.

Misinformation and Agent Selection

Finding accurate information about diabetes and life insurance can be challenging. Some websites and agents may provide misleading quotes or information, making it essential for applicants to work with knowledgeable and specialised agents. Working with the wrong agent or agency can result in higher premiums or even rejection.

While these challenges exist, it is important to note that obtaining life insurance with type 2 diabetes is not impossible. The key is to work with specialised agents, provide comprehensive health information, and shop around for the most suitable policy options.

How can type 2 diabetics get affordable life insurance?

Type 2 diabetics can get life insurance, but it can be more challenging than for those without the condition, and it may be more expensive. However, there are ways to get affordable life insurance coverage.

Firstly, it is important to note that the likelihood of approval varies depending on health and financial factors, how well you manage your health, and whether you have type 1 or type 2 diabetes. Type 2 diabetes is generally considered lower risk by insurance companies, especially if managed through lifestyle choices or medication, without complications, and diagnosed later in life.

• Find an independent broker: Working with an independent broker gives you access to policies from multiple insurance companies, increasing your options for finding affordable coverage. Brokers also have a fiduciary duty to their clients, not the insurance companies.
• Find specialist carriers: Look for life insurance carriers that specialise in high-risk health or special risk factors such as diabetes.
• Get your diabetes under control: If your diabetes is under control, you are more likely to get approved and get better rates. This includes keeping active, maintaining a healthy diet, regularly visiting your doctor, taking medication as prescribed, keeping a healthy body weight, and having regular eye exams.
• Shop around: Compare rates from multiple companies to find the best one for your preferred coverage.
• Choose the right type of policy: Term life insurance is the most affordable option as it is temporary coverage, but it may not be suitable for everyone. Permanent life insurance is more expensive but provides lifelong coverage. You could also consider guaranteed issue life insurance, but this tends to be very expensive.
• Choose a company with clinical underwriting: This is an evaluation process that looks at your overall health, not just specific risk factors.
• Be honest: It is important to be truthful on your medical exam and give accurate information about your diabetes to your insurance company.

Frequently asked questions