Living With Diabetes: Can You Get Life Insurance?

People with pre-existing conditions often find it challenging to obtain life insurance, and diabetes is no exception. However, it is still possible for diabetics to secure life insurance, although it may come at a higher cost and with certain conditions. The type of diabetes, the individual's overall health, age, lifestyle choices, and other factors all play a role in determining the availability and cost of life insurance for diabetics.

The distinction between Type 1 and Type 2 diabetes is crucial, as insurers generally view Type 2 diabetes as a lower risk due to its manageability through lifestyle changes and medication. On the other hand, Type 1 diabetes is considered riskier because it requires constant monitoring and insulin therapy, often resulting in higher premiums.

Well-controlled diabetes, a stable A1C level, and a good overall health condition can increase the chances of obtaining life insurance and may even lead to more competitive rates. Additionally, the timing of the application, the choice between term and permanent life insurance, and the selection of a suitable insurance provider are all important considerations for diabetics seeking life insurance.

Life insurance for type 1 and type 2 diabetes

Life Insurance for Type 1 and Type 2 Diabetics

People with type 1 or type 2 diabetes can get life insurance coverage, but the policies they qualify for and the ease of the process will depend on their type of diabetes, age of diagnosis, and how well their condition is controlled.

Type 1 Diabetes

People with type 1 diabetes are considered higher-risk than those with type 2 and may have a more challenging time finding life insurance. Insurance companies consider type 1 diabetes less manageable, especially if insulin is needed. Type 1 diabetes is often diagnosed in children or teens, which means higher risk as it has had a longer impact on the body and health.

Type 2 Diabetes

Type 2 diabetes is considered lower-risk, especially if managed with lifestyle changes or pills and without complications. Since type 2 is often diagnosed in adulthood, it is viewed more favourably by insurance companies. If you are otherwise healthy and haven't had complications, having type 2 diabetes shouldn't prevent you from getting a policy, but it will affect your risk rating and cost more.

Life Insurance Options

The right type of life insurance policy depends on your budget, coverage needs, and health condition. Here are some options:

• Term life insurance: This is the best fit for most people as it provides financial protection during peak earning years and is much more affordable than other types. Type 2 diabetes won't disqualify you from term life coverage, but rates will be higher. Type 1 diabetes may result in even higher rates or, in rare cases, disqualification.
• Whole life insurance: You can still qualify for whole life insurance if diagnosed with diabetes, but some insurers might not offer coverage if you have type 1 diabetes or additional health conditions. Whole life policies are significantly more expensive, and a diabetes diagnosis will further increase costs.
• Final expense insurance: This policy, also known as burial insurance, covers end-of-life expenses. Most people with serious health conditions are eligible, but it offers higher premiums for lower coverage amounts.
• Guaranteed issue life insurance: This is a type of final expense insurance that offers near-certain approval and doesn't require a medical exam or questionnaire. Coverage benefits are usually capped at around $25,000, and premiums are high.
• Simplified issue life insurance: Another type of final expense coverage that doesn't require a medical exam, but a medical questionnaire is needed. It has slightly lower premiums than guaranteed issue but may decline those with serious health conditions.
• Group life insurance: Many employers offer group life insurance as part of a benefits package, and it usually doesn't have health requirements for approval, so a diabetes diagnosis won't disqualify you. Coverage amounts are often equal to one to two times your salary, and you usually lose the policy if you leave your job.

Factors Affecting Cost of Life Insurance for Diabetics

When applying for life insurance, the company will consider your current health, medical history, family history, and lifestyle to determine coverage and rates. They will want to know if your diabetes is controlled, its impact on your body, and any likely future health risks. You will need to complete a questionnaire and may be asked to provide doctor records and undergo a paramedical exam or complete physical.

Some commonly asked questions include:

• Type of diabetes and date of diagnosis.
• Doctor and care records, including follow-up appointments and referrals.
• A1C levels, which indicate the severity of diabetes and how well it is controlled. Levels below 7.0 are good, while levels above 7.5 show higher risk.
• How diabetes is controlled, whether through diet and exercise, oral medication, insulin, or a combination.
• Current height and weight, family medical history, other medications, and whether you smoke.
• Blood glucose levels, blood pressure, cholesterol numbers, and any signs of kidney damage.
• Other conditions or complications, such as chest pain, coronary artery disease, neuropathy, retinopathy, abnormal ECG, obesity, kidney disease, blackout spells, and hypertension.

Choosing the Best Policy

To choose the best life insurance policy, determine the type of policy (term, whole, guaranteed universal, or universal), the level of underwriting (fully underwritten, no medical exam, or guaranteed acceptance), and the amount of coverage needed. Term life insurance policies are the cheapest per dollar of coverage, while permanent policies like whole and universal life insurance are the most expensive due to their cash value component. No-medical-exam policies are more expensive and limit coverage amounts.

If you are rejected for fully underwritten and no-medical-exam policies due to diabetes, you can still buy a guaranteed acceptance life insurance policy, or final expense insurance. This is a last resort as it is the most costly option, with maximum death benefits of around $25,000 and a two- to three-year waiting period.

Getting life insurance before or after a diabetes diagnosis

Yes, people with diabetes can get life insurance, but it may be more challenging and costly. The timing of your diagnosis in relation to your policy can impact your options. If you already have a life insurance policy before you develop diabetes, your premiums will generally be cheaper than if you try to get life insurance after you've been diagnosed.

People with pre-existing conditions often have a harder time getting a life insurance policy. Insurance providers base premiums on the applicant's expected longevity, and pre-existing medical conditions can shorten life expectancy. Even when blood sugar is well-controlled, diabetes can cause problems and is therefore considered a risk factor.

The type of diabetes you have will impact the policies you'll qualify for and the ease of the process. Type 1 diabetes is generally considered riskier by insurers because it requires constant monitoring and insulin therapy, which may lead to higher premiums. Type 2 diabetes is often viewed as more manageable through lifestyle changes and medication, so it is usually considered lower risk and may result in better rates.

Gestational diabetes is a temporary condition that usually resolves after childbirth. Pregnant women with gestational diabetes may want to wait several months after giving birth before applying for life insurance. Assuming the diabetes goes away, it will be easier to obtain a policy at a standard rate.

In addition to the type of diabetes, insurers will consider your overall health, age, lifestyle choices, and medical history. If your diabetes is well-controlled by lifestyle changes, you will likely pay lower premiums than if you require medication. Insurers will also look at other health and lifestyle factors, such as smoking, exercise, and occupation.

People with diabetes have several life insurance options, including term life, whole life, universal life, and guaranteed issue life insurance. Term life insurance provides coverage for a specific period, usually 10 to 30 years, and is typically more affordable. Whole life and universal life insurance are types of permanent life insurance that include a death benefit and a cash value component and are generally more expensive. Guaranteed issue life insurance doesn't require a medical exam but comes with higher premiums and lower coverage limits.

There is no one-size-fits-all answer, as rates and coverage depend on individual circumstances. However, some insurers offer policies specifically designed for individuals with diabetes, such as John Hancock's Aspire program, which offers incentives and rewards for managing your health.

If your health improves after a diabetes diagnosis, you may be able to qualify for better life insurance rates. You can shop around for a new policy or ask your current provider for a reconsideration based on your improved health.

How diabetes complications affect life insurance

While diabetes does not automatically disqualify a person from getting life insurance, the complications associated with the condition can significantly influence life insurance policies. The type of diabetes, the severity of the condition, and the presence of any complications will determine the life insurance rates and coverage options available to an individual. Here's how diabetes complications can affect life insurance:

Retinopathy

Retinopathy is a common complication of diabetes that affects the blood vessels in the retina and can lead to vision problems. Insurers often view retinopathy as an indicator of how well an individual is managing their diabetes. Advanced retinopathy can be a sign of erratic blood sugar levels, which may result in increased insurance premiums or even policy refusals. About 60% of insurers might reject an application if retinopathy is present, while the remaining 40% may require additional medical assessments and information from the applicant's GP. The timing of any laser eye surgery or other treatments due to retinopathy can also be crucial, as mainstream insurers might decline an application if the procedure was recent. However, getting life insurance with retinopathy is not impossible, and regular eye check-ups, good overall health, and effective management of diabetes can improve the odds of approval.

Diabetic Neuropathy

Diabetic neuropathy is nerve damage caused by prolonged high blood sugar and can affect various parts of the body, including tingling in the hands and feet and digestive and urinary tract issues. As severe neuropathy can increase health risks, it can impact the terms and cost of life insurance. About 70% of insurance providers might decline an application if current neuropathy symptoms are reported, while the remaining 30% will consider the severity and location of the condition. For those with neuropathy, regular medical check-ups, following medical advice, and maintaining a healthy lifestyle can enhance the chances of securing life insurance.

Nephropathy

Nephropathy is a severe consequence of long-term diabetes that affects kidney function. As kidney health is crucial, an individual with significant kidney complications may face higher premiums or stricter policy terms. Out of 15 providers, 13 to 14 may likely decline an application due to potential kidney complications. The few insurers who might consider the application will focus on kidney function tests and their results, especially if the applicant is currently managing nephropathy. For those who have had kidney issues in the past, providing historical kidney function tests with favourable results can improve their chances of acceptance.

Cardiovascular Complications

Diabetes increases the risk of cardiovascular problems, including heart attacks, strokes, and coronary artery disease, which can significantly raise mortality risks. While it doesn't make obtaining life insurance impossible, it can influence the policies' terms and pricing. If facing cardiovascular issues, applicants will need to explore options with specialist insurers, as mainstream insurers will likely decline their application. However, if there has been a 5-10 year period without heart complications, mainstream insurers may be more receptive but will want to review medical records in detail.

Mental Health

The mental health aspect of managing diabetes can also affect life insurance outcomes. Recent suicide attempts or suicidal thoughts in the past 5 years can make securing life insurance more difficult, and instances of self-harm may lead to a GPR (a report from a doctor). It's important to note that most insurance policies include a clause stating that the family will not receive a payout if the insured person passes away from suicide within the first 12 months of the policy.

The impact of age on life insurance for diabetics

• Type 1 Diabetes: Type 1 diabetes is often considered a higher risk by insurers due to its onset age and management complexities. It typically appears in childhood or adolescence, resulting in prolonged exposure to potential complications. Type 1 diabetes requires constant monitoring and insulin therapy, and any inconsistencies in management can lead to severe health issues. As a result, individuals with Type 1 diabetes may face higher premiums or limited coverage options. However, if Type 1 diabetes is diagnosed later in life, the impact on life insurance rates may be reduced as the disease has had less time to affect the body.
• Type 2 Diabetes: Type 2 diabetes is generally viewed as a lower risk by insurers since it often develops later in life and can be managed through lifestyle changes, such as diet, exercise, and medication. Many insurers see Type 2 diabetes as a lower risk, resulting in more favourable rates. However, if Type 2 diabetes is diagnosed at a younger age, it may still lead to higher premiums as the disease has a more extended period to impact the individual's health.
• Age and Overall Health: Insurers consider age and overall health when assessing risk and determining premiums. Younger, healthier individuals typically receive better rates, while older applicants or those with health conditions may face higher costs. However, with Type 1 diabetics, the reverse can be true. Older clients with Type 1 diabetes may receive a better rating as they have learned to manage their condition over time.
• Management and Lifestyle Factors: Age can also influence the management of diabetes and the adoption of healthier lifestyle habits. Older individuals may have a better understanding of their condition and be more diligent in controlling their blood sugar levels through diet, exercise, and medication. This effective management can result in lower premiums. Conversely, younger diabetics may struggle with consistent management, leading to higher premiums.
• Waiting Periods and Resolution: In the case of gestational diabetes, which usually resolves after childbirth, it is recommended to wait several months before applying for life insurance. This waiting period allows time for blood glucose levels to stabilise and can result in more favourable rates. For diabetics of any age, demonstrating good health and stable management of blood glucose levels over time can increase the chances of obtaining life insurance at lower rates.

In summary, while age can play a role in the availability and cost of life insurance for diabetics, it is essential to consider the interplay of various factors, including the type of diabetes, age of onset, overall health, and lifestyle choices. Each individual's situation is unique, and insurers will evaluate the combination of these factors to determine the level of risk and set premiums accordingly.

The medical underwriting process for diabetics

Medical History and Diabetes Details:

The insurance company will ask about your diabetes diagnosis, including the type of diabetes (Type 1, Type 2, or Gestational), the age of onset, and how it is managed. They will want to know about your treatment methods, such as diet, exercise, medication, or insulin therapy, and may request specific information like A1C levels, blood glucose levels, blood pressure, and cholesterol readings. Be prepared to provide detailed answers and relevant medical records.

Physical Examination and Tests:

A physical exam is typically part of the underwriting process, especially if you're applying for a high coverage amount. The insurance company may also require specific tests, such as a microalbumin test, to check for early signs of kidney damage, which is a potential complication of diabetes. These tests help assess your current health status and identify any existing complications.

Risk Assessment and Premium Determination:

The underwriter will use the information gathered to assess your risk level. They will consider factors such as the type of diabetes, its severity, your overall health, age, family medical history, and lifestyle choices (e.g., smoking, diet, exercise). The risk assessment will then be used to determine your premium rates. The higher the perceived risk, the higher the premiums are likely to be.

Alternative Options:

If you prefer not to undergo a medical exam, you can explore "no-medical-exam" policies. However, these policies typically come with higher premiums and lower coverage amounts. Additionally, you may still need to fill out a diabetes-related questionnaire and grant permission for the insurance company to access your medical records. It's important to be honest about your health conditions to avoid issues with your coverage in the future.

Timing and Management of Diabetes:

The timing of your life insurance application can also impact your options and rates. If your diabetes is well-controlled, waiting until your condition is stable may result in more favourable rates. Demonstrating good management of your diabetes through lifestyle changes, medication, or insulin therapy can improve your chances of obtaining coverage and securing lower premiums.

In summary, the medical underwriting process for diabetics involves a thorough evaluation of an individual's health and lifestyle to assess their risk level for life insurance. While diabetes may lead to higher premiums and more limited options, it is still possible for diabetics to obtain life insurance coverage by working closely with insurance providers and managing their health effectively.

Frequently asked questions