Jane Dotson
People with diabetes can get life insurance, but they may have to pay higher premiums than those without the condition. The type of diabetes is one of the most important factors for insurers: Type 1 diabetes is generally considered riskier and may result in higher premiums, while Type 2 diabetes is often viewed as lower risk and can be managed through lifestyle changes and medication, resulting in better rates. The timing of applying for life insurance also matters; it is advisable to wait until your diabetes is under control and apply when your health is in a good state. Shopping around for quotes from different insurers can help individuals with diabetes find the most suitable policy and rate.
| Characteristics | Values |
|---|---|
| Type of Insurance | Final expense insurance, guaranteed-issue life insurance, simplified-issue life insurance, whole life insurance, term life insurance, universal life insurance |
| Factors Affecting Premiums | Type of diabetes, how well diabetes is managed, overall health, age, income, mortgage, debts, anticipated funeral expenses |
| Application Process | Medical exam, health questionnaire, verification of medical history |
| Additional Considerations | Timing of application, type of insurance policy, type of insurance underwriting |
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What You'll Learn
Type 1 and Type 2 diabetes: How they affect insurance rates differently
People with diabetes may generally qualify for life insurance, but they may have to pay higher premiums than those without the condition. The type of diabetes is a significant factor in determining insurance rates and coverage offerings. Type 1 and Type 2 diabetes affect insurance rates differently, and insurers consider several factors when evaluating the risk of insuring an individual with either type of diabetes.
Type 1 diabetes, also known as insulin-resistant diabetes, often results in higher insurance premiums due to the following reasons:
- Higher Risk: Type 1 diabetes always requires insulin therapy and is considered a higher insurance risk. It is harder to control and, therefore, poses a higher risk to insurers.
- Rarity: Type 1 diabetes is less common than Type 2, accounting for only 5-10% of cases in the U.S. Its rarity may contribute to higher insurance rates.
- Age of Diagnosis: Type 1 diabetes is often diagnosed in children, teens, or young adults. The younger the person is at the time of diagnosis, the longer they will live with the condition, impacting their health and insurance rates.
- Control and Management: Type 1 diabetes can be more challenging to manage and may require a combination of diet, exercise, and insulin therapy. Poorly managed diabetes may lead to higher insurance rates.
On the other hand, Type 2 diabetes is generally considered less risky by insurers due to the following reasons:
- Manageability: Type 2 diabetes can often be managed with diet, exercise, and sometimes medication. This manageability makes it a lower risk in the eyes of insurers, leading to more affordable rates.
- Age of Onset: Type 2 diabetes usually develops later in life, resulting in less time for the condition to affect the body.
- Prevalence: Type 2 diabetes is much more common than Type 1, comprising 90-95% of diabetes cases in the U.S. Its prevalence may contribute to more favorable insurance rates.
- Lifestyle Factors: Type 2 diabetes is often related to lifestyle factors such as inactivity and excess weight. Addressing these factors through healthy habits can improve insurance rates.
It is important to note that insurance companies consider various factors beyond the type of diabetes when determining rates. These factors include age, gender, lifestyle habits, overall health, and the applicant's expected longevity. Additionally, different insurance providers have different rules and criteria for evaluating diabetics, so it is beneficial to compare quotes and find the right insurer for your specific situation.
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Getting life insurance without a medical exam
Life insurance for people with diabetes is available from several providers. While some providers require a medical exam, others do not.
Simplified Issue Policy
Simplified issue policies allow you to apply for life insurance by completing a health survey and answering medical questions, without the need for a medical exam. This type of policy may be a good option for diabetics who are in good overall health, as it may not cost much more than a fully underwritten policy.
Guaranteed Issue Policy
Guaranteed issue policies are another option for those who cannot qualify for other types of life insurance due to their health. You cannot be disqualified from these policies because of your health, but they tend to be more expensive with lower coverage options.
TruStage™ Guaranteed Acceptance Whole Life
TruStage™ offers a guaranteed acceptance whole life insurance policy with no medical exams or health questions required. Your rate will never increase, and your coverage will never decrease, even if you have a chronic illness.
Final Expense Insurance
Final expense insurance is a small whole life policy designed to cover funeral and end-of-life expenses, which often exceed $10,000. This type of policy typically has lower premiums and can help lessen the financial burden on your family during a difficult time.
It is important to note that life insurance rates for diabetics are generally higher than for people without diabetes, and the type of diabetes and how well it is managed can impact the availability and cost of coverage. Shopping around and comparing quotes from different providers can help you find the best rate and policy for your specific needs.
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How to get a competitive rate with diabetes
While people with diabetes may pay higher premiums on average, there are ways to increase your chances of getting a competitive rate on life insurance.
First, it's important to note that the type of diabetes you have will impact your life insurance options. Type 1 diabetes is often considered a higher risk because it's harder to control and usually requires insulin therapy. As a result, it can be more challenging to qualify for life insurance with Type 1 diabetes, and premiums are typically higher. On the other hand, Type 2 diabetes is generally viewed as less risky because it can often be managed through diet, exercise, and sometimes medication. This means that if you have Type 2 diabetes, you may have more life insurance options available to you, and you may be able to qualify for more affordable rates.
To get a competitive rate, it's crucial to demonstrate that your diabetes is well-managed. This can be done by maintaining stable blood glucose and A1C (glycohemoglobin) levels within the range recommended by your doctor. By doing so, you can improve your medical exam results, which insurers use to evaluate your risk and set your rates. Leading a healthy lifestyle, including regular exercise, a nutritious diet, and avoiding smoking, can also help you manage your diabetes and improve your chances of getting a competitive rate.
Additionally, it's essential to shop around and compare quotes from different insurance companies. Different insurers have varying rates and policies for diabetics, so getting multiple quotes will help you find the best option for your circumstances. You can shop for quotes online, over the phone, or in person.
Some insurance companies, such as Legal & General America, also doing business as Banner Life and William Penn, offer more affordable rates for people with diabetes, regardless of their health profile. Other companies, like Protective, offer competitive quotes with superior choices of level term lengths.
Finally, consider the type of life insurance policy that best suits your needs. Term life insurance is more affordable and provides coverage for a set number of years, whereas permanent life insurance, such as whole life or universal life, offers coverage regardless of when you pass away. Simplified-issue life insurance and guaranteed-issue life insurance are also options if you want to skip the medical exam, although these policies tend to be more expensive with lower coverage options.
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The underwriting process: What to expect
The underwriting process for life insurance with diabetes can be complex and may involve several steps. Here's what to expect:
Medical Underwriting
This process typically includes a medical questionnaire, a physical exam, and a review of your health records. The insurance company may also require specific details about your diabetes diagnosis, such as when you were first diagnosed, how it is controlled (e.g., diet, exercise, medication, or insulin), your A1C levels, blood glucose levels, blood pressure, and cholesterol readings.
Risk Assessment
The underwriter will assess your overall risk based on the information provided during the medical underwriting process. They will consider your current health, medical history, family medical history, age, and lifestyle choices (such as smoking habits). The underwriter will also determine your life expectancy and assign you to a risk class, which will impact the amount of coverage and the monthly premium.
Approval or Rejection
Based on the risk assessment, the underwriter will either approve or reject your application for coverage. If approved, the underwriter will determine the amount of coverage and the price. The more risk the insurance company assumes, the higher the premium will be.
Timeframe
The underwriting process can vary in duration, typically taking anywhere from 24 hours to 4-6 weeks, depending on the complexity of the policy and the coverage requested.
Policy Options
It is important to shop around and compare different insurance companies, as they have varying underwriting guidelines and policies for diabetes. You can choose between a fully underwritten policy, which may offer lower rates but requires a more time-consuming application process, or a no-medical-exam policy, which is faster but typically more expensive.
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Whole life insurance: An attractive option for diabetics
While diabetes does not disqualify you from getting life insurance coverage, it is a pre-existing condition, and as such, your underwriting process may be more complicated, and your options may be more limited. The type of diabetes you have will impact the coverage options available to you, as will your age and general health.
Whole life insurance is an attractive option for diabetics as it offers a guaranteed death benefit once you qualify, and your premiums will never change, even if your condition worsens. This is in contrast to term life insurance, which is more affordable but will only provide coverage if you pass away within a set number of years. Whole life insurance is designed to provide coverage no matter when you pass away.
It's important to note that people with diabetes may pay higher premiums on average. However, following healthy habits and managing your diabetes well can potentially reduce these premiums. Getting regular exercise, eating healthily, avoiding smoking, taking your diabetes medication, and visiting your doctor can all help you stay healthy and demonstrate to insurers that you're vigilant about managing your diabetes.
When applying for life insurance as a diabetic, you will likely need to disclose your diabetes and provide information about your diagnosis, when you were first diagnosed, how it is controlled, your A1C levels, your most recent blood glucose levels, your blood pressure, and your cholesterol readings. The insurance company may also require a physical exam and a review of your medical records.
While whole life insurance offers guaranteed coverage and stable premiums for diabetics, it's important to compare policies and pricing options from different companies to find the right coverage for your needs.
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Frequently asked questions
Yes, you can get life insurance with diabetes, but it may be more expensive and you may have to take extra steps in the application process. People with diabetes may pay higher premiums on average, but following healthy habits and managing your diabetes can potentially reduce these premiums.
People with diabetes can take out most types of life insurance policies, but their policies may cost more. Whole life insurance is an attractive option for people with diabetes because once you qualify, it offers a guaranteed death benefit and your premiums will never increase. Term life insurance is more affordable but only provides coverage for a set number of years. Simplified-issue life insurance and final expense insurance are also options, but they have lower coverage amounts and higher premiums.
The type of diabetes you have is one of the most important considerations for insurers. Type 2 diabetes is often considered lower risk and more easily manageable through lifestyle changes and medication, so people with this type of diabetes typically have an easier time qualifying for coverage and getting better rates. Type 1 diabetes is generally viewed as riskier because it requires constant monitoring and insulin therapy, which can lead to higher premiums. However, well-controlled Type 1 diabetes doesn't necessarily mean you will have extremely high rates, as insurers will also look at how well you manage your health overall.
