Life Insurance Options For Diabetics: What You Need To Know

Life insurance is generally available for people with diabetes, but the options and rates depend on several factors, including the type of diabetes, how well it is managed, and the type of policy desired. While it is more challenging to obtain life insurance with Type 1 diabetes, people with Type 2 diabetes may have more options due to the manageability of the condition through lifestyle changes. The timing of a diabetes diagnosis in relation to the life insurance application can also impact the availability and cost of coverage. Life insurance rates for diabetics are typically higher than for those without the condition, but demonstrating good health and stable blood glucose levels can help diabetics obtain more favourable rates.

Getting life insurance before a diabetes diagnosis

If you are concerned about your risk of developing diabetes and want to take out life insurance, it is worth noting that you can generally get life insurance with diabetes, possibly even at a competitive rate. However, it is also important to know that you will have more options available to you, and your premiums will generally be cheaper, if you take out life insurance before you develop diabetes.

The type of diabetes you have, how long you have had it, and how well you are managing it will all impact the policy and pricing options available to you. People with type 1 diabetes are considered higher risk than those with type 2, as it is often harder to control and can be more difficult to treat. Type 2 diabetes is often managed with lifestyle changes, such as weight loss and medication. If you have type 2 diabetes, you are more likely to be viewed favourably by insurance companies.

If you already have a life insurance policy and are then diagnosed with diabetes, your provider cannot cancel the policy or change your rates. However, if you want to increase your coverage, you will need to undergo additional underwriting, which could increase your costs.

If you are pregnant and have gestational diabetes, it is worth waiting until after you have given birth to take out life insurance. This is because gestational diabetes is often temporary and goes away after pregnancy. If you are otherwise in good health, your life insurance quote will likely be more affordable once your gestational diabetes resolves.

Waiting for gestational diabetes to resolve

If you've been diagnosed with gestational diabetes during pregnancy, it's worth considering waiting until after you've given birth to apply for life insurance. This is because gestational diabetes is often temporary and tends to go away after giving birth. If you are otherwise in good health, waiting for your gestational diabetes to resolve could result in a more affordable life insurance quote.

When applying for life insurance, it's important to be transparent about your health history, including any history of gestational diabetes. While it may increase your premiums, nondisclosure could be considered life insurance fraud and could potentially nullify your policy with no refund.

The impact of a gestational diabetes diagnosis on life insurance premiums is an area of controversy. In most U.S. states, a diagnosis is likely to influence the mother's insurance premiums. However, a study in Australia found that a history of gestational diabetes did not pose a financial impediment to obtaining life insurance, provided there were no other health risk factors.

If you already have a life insurance policy in place before developing gestational diabetes, your premiums will generally be lower than if you take out a new policy after diagnosis. Therefore, it may be beneficial to take out a policy before becoming pregnant if you are planning to have a child.

In summary, if you are considering life insurance and have been diagnosed with gestational diabetes, it is advisable to wait until after giving birth to apply for a policy. This will likely result in more options and lower premiums, especially if you are otherwise in good health.

Waiting until diabetes is under control

Waiting until your diabetes is under control is a good strategy when applying for life insurance. While life insurance rates for diabetics are generally higher than for non-diabetics, you can get the lowest rates possible by demonstrating that you are in good health and managing your diabetes well.

For example, insurers view your application more favourably if you can show that you have kept your blood glucose and A1C (glycohemoglobin) levels stable and within the range recommended by your doctor for a year. This can result in more coverage options and lower prices than if you applied while your condition was less stable.

If you have Type 1 diabetes, you may be assigned a lower health class and charged a higher rate. This is because Type 1 is considered harder to control and, therefore, a higher risk. Type 2 diabetes is seen as less risky overall and easier to manage through diet, exercise, good sleep and stress reduction.

If you have gestational diabetes, it is worth waiting until after you have given birth to apply for life insurance. Gestational diabetes often disappears after pregnancy, so if you are otherwise in good health, your life insurance quote will likely be more affordable.

The longer you have had diabetes, the higher your insurance rate is likely to be. So, if you were diagnosed as a child, you will probably pay more than someone who was diagnosed as an adult.

Insurers will also consider your overall health when assessing your application. For example, if you have high cholesterol, high blood pressure or are overweight, your rates are likely to be higher.

To summarise, while diabetics can generally get life insurance, waiting until your diabetes is under control before applying can result in more coverage options and lower prices.

Type 1 vs Type 2 diabetes

While both types of diabetes are serious conditions that can lead to severe health complications if left untreated, there are some key differences between Type 1 and Type 2 diabetes in terms of causes, symptoms, treatment, and risk factors. Understanding these differences is crucial for effective management and treatment.

Causes

Type 1 diabetes is an autoimmune disorder caused by an overactive immune system. It occurs when the body's immune system attacks the insulin-producing cells in the pancreas, destroying its natural ability to produce insulin. In Type 1 diabetes, the body doesn't make any insulin at all.

On the other hand, Type 2 diabetes is not an autoimmune condition. It is characterised by the pancreas producing less insulin than usual, and the body becoming resistant to insulin. This means that while the body has insulin, it stops being able to use it effectively. Type 2 diabetes is often associated with having too much body fat, and unlike Type 1, it typically occurs in people over 45 or in younger people with obesity or genetic predispositions.

Symptoms

Both types of diabetes share common symptoms, including frequent urination, increased thirst, fatigue, unintended weight loss, genital itching or thrush, and slow-healing cuts and wounds. However, the speed at which these symptoms appear can differ between the two types. Type 1 symptoms tend to appear more quickly and are often recognised more easily, especially in children. In contrast, Type 2 symptoms can be more subtle and gradual, making them easier to miss, especially in the early stages.

Treatment

The treatment for Type 1 diabetes involves taking synthetic insulin medication. People with Type 1 must take insulin, as their bodies do not produce it naturally, and they cannot stay healthy without it.

Type 2 diabetes treatment, on the other hand, may or may not involve insulin. Some people with Type 2 may take synthetic insulin if their bodies have stopped producing it or if they need more. However, Type 2 diabetes is sometimes treated without insulin, focusing instead on lifestyle changes such as diet, exercise, and weight management.

Risk Factors

For Type 1 diabetes, family history and genes can slightly increase the risk, as there are a number of genes linked to this type. While it is often diagnosed in childhood, Type 1 diabetes can develop at any age, and the risk of diagnosis increases if you are under 40.

In contrast, for Type 2 diabetes, age, family history, ethnicity, waist circumference, and being overweight or obese are all risk factors. Unlike Type 1, the risk of developing Type 2 diabetes increases with age, and certain ethnic groups may be more susceptible. Additionally, Type 2 diabetes is influenced by factors related to inequality, and it is important to note that it does not solely affect those who are overweight or obese.

Simplified issue life insurance

If your medical exam results are limiting your standard life insurance policy options because of your diabetes, a simplified issue policy may be a good option. Simplified issue life insurance allows you to apply by completing a health survey and answering medical questions without undergoing a medical exam. This type of policy may not cost much more than a fully underwritten policy and could be suitable for diabetics who are in good overall health.

Mutual of Omaha, for example, offers simplified-issue no-medical-exam life insurance to people aged 45 and above. This type of coverage is often referred to as final expense insurance or burial insurance. Diabetics who have struggled to qualify for coverage elsewhere may be able to get coverage through this type of policy.

If you apply through an agent, you may be approved for up to $40,000 in life insurance coverage, depending on your application. Or you can apply online or with an agent for guaranteed-issue coverage (which means that approval is guaranteed), but the death benefit will be limited to $25,000.

Note that guaranteed-issue policies do not include accelerated benefit riders and have a graded death benefit period. This means that if you die of natural causes during the first two years of coverage, your beneficiaries will receive the premiums you paid plus 10%.

Frequently asked questions