Getting Life Insurance as a Diabetic: Everything You Need to Know
If you need life insurance, any pre-existing conditions you have will have a major impact on the type of coverage you can get, how easy it will be to get coverage, as well as how much you will have to pay in premiums. Type 1 and type 2 diabetics can get adequate life insurance coverage, but the policies they qualify for will depend on the type of diabetes they have, how well it is controlled, if they have had any complications and the age of diagnosis.
Diabetes Type 1 Vs Type 2: How They Impact Life Insurance
It is possible to get life insurance when you have diabetes. However, as mentioned, the type of coverage and the amount you pay will depend on the type of diabetes you have and the insurance provider you choose. Insurance companies often look at type 1 and type 2 diabetes differently because they impact your life and health differently.
Type 1 Diabetics
Type 1 diabetics are considered riskier than type 2 diabetics by many life insurance providers. This makes it harder for type 1 diabetics to find proper insurance coverage. Life insurance companies also judge type 1 diabetes to be less manageable than type 2 because those who have diabetes type 1 need insulin to control it.
Another reason why it is harder for type 1 diabetics to get insurance (and if they do, they often have to pay higher premiums), is the age of diagnosis. Diabetes type one is often diagnosed in children and teens which makes those with type 1 diagnosis a higher risk for insurers. Insurers consider a later diagnosis to be a lower risk applicant because in this case, the diagnosis will affect your body and health for fewer years.
Type 2 Diabetics
Type 2 diabetics are seen as lower risk by insurance companies, especially because they can manage the condition through oral medication or by making some lifestyle changes.
Diabetes type 2 is also often diagnosed in adults, which improves the chances of an insurer looking at your application favourably.
Although you might have to pay higher premiums if you have type 2 diabetes, this amount is often lower if you have never had any complications and are deemed healthy.
Factors That Affect the Cost of Life Insurance for People with Diabetes
When you apply for life insurance, the insurer will often look at four main things:
● Medical history
● Current health
● Family history
A combination of these factors will determine if the insurer will offer coverage and the rates you have to pay. For diabetics, the most important metric is how well they are able to control their diabetes and how well they have done so in the past. They will also look at how diabetes has affected your body and if it will negatively affect your life and body in the future.
When you apply for life insurance with diabetes, you will need to fill in a thorough questionnaire about your condition as well as a standard life insurance policy form. Some insurance providers will also ask for additional records from all the physicians you have visited in the past few years. Your insurance provider might also request that you complete a full physical or medical exam unless you are looking for a no-medical-exam policy.
Choosing the Best Life Insurance Policy
Before settling on an insurance provider, it is advisable that you consider the features you need. When choosing the cover, you need to think about the type of term you would like. The two main types are Decreasing and Level.
In a level term, the pay-out is fixed and does not decrease no matter how long the policy lasts. A decreasing term is the direct opposite, with the pay-out decreasing the longer the term is. Because of this, a decreasing term is often cheaper than a level term but with the decreasing pay-out, you might want to carefully consider if this is the right option for you.
Next, you need to think about how long you want to be covered for. It is important to choose the correct number of years so the coverage does not elapse too soon.
Lastly, you want to consider how much you want to be covered for. This is the amount your beneficiaries will receive if you pass away. Remember that the pay-out is directly related to the amount you pay in premiums, with higher pay-outs requiring higher premiums. Because your premiums might already be higher than average, you need to think about this amount carefully. You do not want to choose a pay-out that is so high that you are unable to keep making the payments.
Increase Your Odds of Getting a Better Quote
When looking for the best coverage, there are a few things you can do to ensure you get the best quote. The first of these is providing evidence that you are actively managing your diabetes. This can include evidence of regular exercise, healthy lifestyle choices, limiting alcohol and smoking and regular doctor visits.
To be in a better position to choose the right diabetes life insurance provider, you should shop around to compare different quotes and providers. To ensure you are properly covered, try finding insurers who offer adequate coverage and affordable premiums for those looking for life insurance with diabetes. Comparing life insurance providers on a platform like I’m Insured is a great place to start. On I’m Insured, all you need to do is enter your details, not forgetting to mention the type of diabetes you have, and you will get quotes from over 200 leading insurance providers. You can then sift through the quotes to find the best diabetes life insurance coverage. I’m Insured can also help you find other types of insurance including home, vehicle, travel and pet insurance.
Your medical records have to also be up to date and accurate. You can include a recent assessment from your physician. Ideally, these should be records that are not older than 12 months.
Does a Declined Application Affect Future Applications?
Sadly, yes. Many insurance companies that offer diabetes life insurance will ask if your application has been declined in the past. If it has, that might reduce the chances of a future application being accepted or even getting a quote.
To prevent this from happening, always check the details of any policies you are considering. At the very least, check the eligibility and ensure you understand everything contained on there. You should also check the requirements of the policy before making the application. If you have any trouble doing this, do talk to an expert so they can walk you through the process and increase the chances of your application being accepted.
Getting adequate life insurance coverage when you have diabetes can be complicated and is often harder than getting regular life insurance. There are a lot of factors you need to consider and that come into play as the insurance provider you choose looks through your application. These include your age, when you were diagnosed, the type of diabetes you have as well as how well you manage your condition. To make things easier on yourself, ensure you shop around to find an insurance provider who not only covers the type of diabetes you have, but that also has affordable premiums.