Life Insurance for Diabetics

According to the Centers for Disease Control and Prevention’s most recent data, approximately one in every ten American people has diabetes. Life insurance for diabetics is available, but your selections may be limited, and you should expect to spend extra for coverage.

The good news: If you can demonstrate that your diabetes is under control, you may be eligible for better policies and pricing.

Why life insurance companies care about diabetes

Diabetes, like any other pre-existing ailment, instantly classifies you as “riskier” in the eyes of insurers. Diabetes is caused by high blood sugar levels, and it raises the risk of developing additional health problems later in life, such as stroke, heart disease, hypertension, and renal disease.

It’s a little morbid to consider, but life insurance firms issue policies and set rates based on projected mortality. Diabetes has a slew of risk factors, so insurers protect themselves by boosting prices and making it more difficult for diabetics to qualify for coverage.

5 things insurers look at

When you apply for life insurance, insurers will carefully consider your diabetes and how you manage it. They’ll then use that information to determine whether to offer you a policy, which health class to place you in, and how much to charge. They concentrate on five major factors:

1. Your age

Insurers evaluate two numbers:

• Your age when you apply for a policy. Young applicants typically receive the lowest prices from life insurance providers, so it’s best to purchase a policy as soon as you need it.
• Your age when diagnosed with diabetes. The longer you have diabetes, the bigger your risk is. So, if you were diagnosed with diabetes as a 10-year-old decades ago, you’ll most likely pay more than someone your age who has late-onset diabetes.

2. Type of Diabetes

Type 2 diabetes accounts for 90% to 95% of U.S. cases, according to the CDC, and insurers are usually more lenient with this type. It is often diagnosed in adulthood, and the symptoms are milder. Some people can manage Type 2 diabetes by eating well, exercising regularly, and taking medication.

Type 2 diabetics are considered less hazardous by insurers than Type 1 diabetics, thus you are more likely to be placed in a better health class (such as Standard) and pay a lesser price.

Type 1 diabetes is less prevalent. It is typically identified at a younger age, and patients require insulin therapy to maintain control of the illness. If you have Type 1, you will likely be assigned a lower health class (such as Substandard) and charged a higher rate. However, insurers regard people with diabetes differently, so if you’re generally healthy, shopping around may help you receive a lower price.

Gestational diabetes is a transitory illness that can develop during pregnancy, and most insurers will evaluate your diagnosis and treatment in the same manner that they do for Type 1 and Type 2. To avoid paying a higher premium, apply for life insurance before becoming pregnant or during the first trimester. Otherwise, you may want to wait a few months after giving birth before applying. Your diabetes may improve at that time, allowing you to score higher.

3. The severity of your diabetes

In order to determine the severity of your diabetes, insurers will use a blood test known as the A1C. If the reading suggests that your diabetes is under control, you will be regarded more positively than someone with a higher reading.

In rare situations, an insurer may accept glucose tolerance test results rather than an A1C. The closer you are to normal blood sugar levels, the higher your chances of qualifying for life insurance.

Aside from the tests, insurers will inquire about any diabetic problems, such as neuropathy (nerve damage) or retinopathy (retina damage). You will not be automatically punished for having chronic problems; nevertheless, if it is evident that you are not managing them well, you will face higher rates or have difficulty obtaining a typical life insurance policy.

4. How you’re managing your diabetes

If you can demonstrate that you are taking steps to treat your diabetes, you will have a higher chance of locking in coverage and paying a cheaper premium.

The type of treatment varies. However, eating a balanced diet, exercising, taking an oral medicine, and visiting your doctor on a regular basis are all solid signals that you’re trying to manage your Type 2 diabetes.

When it comes to Type 1 diabetes, insurers will focus on your A1C level and any connected health conditions. 

5. Other health factors

Aside from the key four characteristics, insurers additionally consider:

• The remainder of your medical history. High cholesterol, high blood pressure, and being overweight are all risk factors that can increase your rates.
• Your family medical history. Your insurer will inquire about inherited diseases that may raise your health risk, such as kidney and heart problems.
• Your alcohol use. Excessive alcohol use can exacerbate diabetes-related problems such as nerve damage and eye degeneration. For this reason, your insurance may inquire about your alcohol consumption.

Choosing the right life insurance for diabetics

The ideal policy for you depends on your budget and if you wish to take a life insurance medical test.

The following are the primary life insurance choices for diabetics:

Term Life Insurance

Term life insurance is the cheapest and simplest coverage, lasting a specified number of years, such as 10, 15, or 20. You’ll need to fill out a health questionnaire and get a medical exam, so this is a fantastic option for people who have diabetes under control.

Whole life insurance

If you have a permanent need for life insurance, consider whole life insurance. It normally provides lifelong coverage, with a portion of your premium invested each month to give your policy cash value. Once you’ve accumulated enough cash worth, you can begin taking out loans against your policy.

Whole life insurance, on the other hand, can be five to fifteen times more expensive than term life insurance and typically involves a medical exam. As a result, Type 1 diabetics and Type 2 diabetics who are not receiving treatment or maintaining their general health may be unable to obtain reasonable rates or coverage.

Simplified issue or guaranteed issue life insurance

If your diabetes is advanced or uncontrolled, you may be eligible for life insurance that does not require a medical exam. Simplified issue policies still need you to fill out a health questionnaire, whereas guaranteed issue life insurance policies waive both the questionnaire and the medical exam. However, they are normally only open to persons above the age of 50.

Because the insurer knows less information about you, these policies are often more expensive and have lower coverage limits, such as $25,000 or $50,000.

Group life insurance

Another avenue for diabetics to obtain coverage is through their employer. If your workplace provides group life insurance as part of your benefits package, take advantage of it, especially if your employer pays all or a portion of the premiums.

You will not be required to take a medical exam, although many firms provide a policy worth only one or two times your pay. If you have financial dependents, debt, or valuables to safeguard, you might consider purchasing extra life insurance to increase your coverage – but some policies require you to answer health-related questions.

Life Insurance Riders

Some policies allow you to modify your coverage with life insurance riders. For a diabetic, these riders are worth considering:

• Accelerated death benefit rider. Allows you to withdraw a portion of your policy’s death benefit early if you are diagnosed with a terminal disease.
• Critical illness rider. Allows you to withdraw a portion of your death benefit while still alive if you have proof of a critical or persistent sickness.
• Premium rider waiver. Pauses your premiums if you get disabled and are unable to work for an extended length of time.
• Guaranteed insurability rider. You can upgrade your coverage later without having to take another medical test or answer health questions.
• Term conversion rider. Allows you to change all or portion of your term life insurance to permanent coverage before a certain deadline, such as age 65 or the fifth policy anniversary.

Questions insurers might ask about your diabetes

When you select a policy that includes a health questionnaire or physical, you may expect to be asked basic questions about your health, lifestyle, and family medical history.

• Your insurance will also ask you specific questions regarding your diabetes. These may include:
• Which form of diabetes do you have?
• When were you diagnosed?
• Do you self-monitor your glucose levels?
• Do you take insulin, an oral medication, or a mix of the two? If so, you’ll need to specify the quantity of insulin units used every day, as well as the types of medication and dosages.
• What are your current dietary and exercise habits?
• What’s your current A1C level?
• What is your average A1C reading during the last year?
• Have you had any other tests for your diabetes?
• Who is your doctor, and when was your previous visit? You may need to supply contact information for your whole healthcare team, including primary care providers and endocrinologists.
• Do you suffer diabetes consequences like high blood pressure, blurred vision, blackouts, or renal problems?
• Have you been diagnosed with any other significant illnesses, such as coronary artery disease or kidney disease?
• Have you ever had a diabetic or insulin coma?
• Are you undergoing dialysis?

Your insurance may require records of recent test results, doctor’s appointments, medications, referrals, and hospitalizations. Bring any supporting documentation with you when you apply to make the process go more smoothly.

During the medical checkup, the technician will measure your height and weight, as well as your blood pressure and blood glucose levels, and will send blood or urine samples to a lab to be tested for HDL (good) and LDL (bad) cholesterol. The checkup may involve an electrocardiogram, or EKG. In some circumstances, the technician may request a microalbumin test, which can detect early signs of kidney impairment.

The Cost of Life Insurance with Diabetes

Your insurer will assign you a life insurance rate class based on your age, lifestyle, driving record, and the risk associated with diabetes. This will decide your premium, or the amount you’ll pay per month.

In general, diabetics pay more for insurance than non-diabetics. However, your premium may not be as costly as you believe, particularly if you have Type 2 diabetes and are managing it properly. You may be eligible for Standard rates with some insurers.

Sample life insurance rates for diabetics

Diabetics may pay two to four times more for life insurance than a healthy individual without diabetes, according to Reliableinsurance, which analyzed rates for a $500,000, 20-year term life policy.

Here’s how much you’ll pay per month for a $500,000, 20-year term life insurance policy if you have diabetes and don’t smoke.

Tips to lower your life insurance rates

There are a few options for diabetics to receive affordable life insurance:

• Shop around. Diabetes is weighed differently by insurers, with some being more lenient than others. Compare life insurance quotes from a few firms to ensure you’re getting the best pricing.
• Manage your diabetes. See your doctor frequently, take your medications, eat a nutritious diet, and stay active. That way, when it comes time to apply for life insurance, you’ll be able to demonstrate to the insurer that you’re doing everything you can to manage it.
• Use a broker. Some life insurance brokers specialize in high-risk applicants, and they can help you narrow down your selections and increase your chances of getting approved.
• Investigate insurers offering wellness programs. For example, John Hancock’s Aspire program is intended for diabetics. It offers a premium discount of up to 25% for those who eat sensibly and exercise regularly.