When applying for life insurance for a person with diabetes, being approved could be a challenge.
However, if you apply through the right channel, your chances of obtaining the policy you need can improve substantially.
In most instances, people will typically purchase life insurance through more “traditional” sources such as a regular life insurance agent or company.
What many do not realize, though, there are insurance agencies and companies which specialize in working with what are referred to as higher risk cases.
By going through these entities when applying for coverage, you are more apt to find and secure the life insurance coverage you need.
Can You Qualify for Life Insurance with Diabetes?
While it can be more of a challenge, the good news is you can still qualify for life insurance if you have diabetes.
Doing so, however, may take the assistance of an independent life insurance brokerage has access to many insurance companies and can work with you in determining which may offer the best coverage and premium rate for you.
However, if you have diabetes, the underwriters at the life insurance company will look at your condition related factors, as well as your health condition overall.
And, if you are otherwise in very good health, it is possible you may qualify for a Standard premium rating on a traditional, medically underwritten life insurance policy.
This means you would be charged a premium amount in line with other policyholders who are considered to be in “average” health, and who are also your same gender and age.
If, however, the underwriters see your condition as posing more of a risk, then they may either decline the application for coverage or approve it on a Sub-standard level.
You may be required to pay more for your life insurance policy.
Generally, the premium for those who have Type 2 diabetes will be more affordable than for those who have Type 1.
This, however, will depend in large part on how well your condition is being controlled and managed, as well as on your age at the onset of your diabetes.
This is because often, those who have contracted this health condition when they are older can often get lower life insurance rates than those who have had diabetes for many years.
Maybe you’re concerned because you have another health condition. Perhaps you are searching for life insurance after having a stroke related to diabetes. Our professionals can answer your questions and get you the coverage you deserve.
What To Expect When Applying For Coverage
When seeking life insurance for diabetics, you will typically be asked certain questions by the life insurance company’s underwriters. This is because the underwriters want to obtain a clear picture of your overall health condition.
They also want to get an idea of how well you are managing your diabetes. This will help them in determining whether or not you will be a good risk for the insurance company to take on by accepting you for life insurance coverage.
If you are not sure about managing your diabetes then you can get information from the American Diabetes Association.
Factors Which Will Affect The Premium Rates
Some of the primary determinants will include:
- Type of diabetes. One of the most prominent factors is whether you have Type One or Type Two diabetes. Those who have Type Two diabetes will typically pay lower life insurance premiums.
- Height and weight. Just as with any other life insurance policy, factors such as your height and weight will also play a role in the premium you pay. However, because you also have diabetes, being overweight for your height can become more of an issue. Keep in mind – there are still life insurance policies available for obese individuals.
- The treatment you are receiving – The treatment you are receiving is also an important criteria in determining your life insurance policy rate. Those who take both oral medications and insulin can be successfully insured, provided they are taking their prescriptions as prescribed.
- The date of your diagnosis – If you have had diabetes for a long period of time, there is a chance you may have complications. With this in mind, your premium rates may be higher than if you have just recently been diagnosed. Likewise, the age at which you were diagnosed with diabetes will also make a difference. For example, if your diagnosis occurred prior to age 40, it is likely your premium rate may be higher than if you were diagnosed after the age of 40.
- Average glucose or A1c readings – One of the biggest factors affecting your life insurance premium rate is your average glucose or A1c readings. If your condition is under control – meaning your average readings are in the range of 130 or below – then you could be eligible for a Standard premium rate. You will pay the same rate as other insureds who are of average health, height, and weight.
In addition to these factors, the life insurance underwriters will also take other criteria into consideration as well, such as whether you have other health conditions, whether or not you smoke or use tobacco products, and what type of potentially risky activities you participate in.
Once all of this information has been compiled, the underwriters will be able to make a determination on acceptance of the policy, and if so, the amount of premium rate to be charged.
Does Life Insurance for Type 2 Diabetics Cost More?
While life insurance for Type 2 diabetics may cost more than a comparable policy for someone who is in optimal health, coverage is typically more affordable than for someone who has Type 1 diabetes.
Ultimately, however, the premium will be dependent on how you are rated by the life insurance company’s underwriters. While all insurance companies will rate their applicants somewhat differently, these companies will typically have similar broad rating classifications. These include the following:
- Preferred – Those who qualify for a Preferred policy classification are considered to be in excellent health. These individuals will typically also have an excellent family health history as well. Because those in the Preferred category pose a lower risk, they are charged a lower than average premium rate for their coverage. People with type 2 diabetes probably won’t be accepted as a preferred applicant.
- Standard – This is a common rating for applicants with type 2. These are people who are in decent health, aside from the type 2 diabetes. The premiums aren’t the cheapest, but they aren’t sky high either.
- Substandard – An individual who is considered to be in below average health, but not bad enough to be rejected. The rates are going to be the worst you can get, but in most cases, are still affordable.
If your policy does not qualify even for a Substandard classification, there are other options, such as a no medical exam policy, or a guaranteed issue policy. These have easier qualifications, but several downsides. You aren’t able to buy as much insurance and it’s more expensive.
How Much Will Your Life Insurance Policy Cost with Type 1?
When shopping for life insurance for Type 1 diabetics, it’s vital to find an agency who will give a quote from multiple carrier.
While the actual underwriting criteria may differ, most life insurance companies will have similar categories or underwriting classifications. These include the following:
- Preferred – Those who are accepted as a Preferred are considered to be in excellent health, and have a family history of excellent health as well. Because of their excellent health – and low risk that is posed to the insurance company – the insureds in this category will pay a lower amount of premium than the average policyholder. Most, if not all, Type 1 diabetics will not qualify for the Preferred underwriting category.
- Standard – The Standard underwriting class is where most policyholders who are of “average” health, height, and weight will fall. In most instances, those who have Type 1 diabetes will not fall into the Standard category.
- Substandard – Those who have certain health conditions, yet who are not in poor enough health to be declined, will fall into the Substandard rating category. In most instances, life insurance policies for Type 1 diabetics will be approved in the Substandard rating category. Here, you will be required to pay a higher amount of premium than the average policyholder in order to compensate for the higher amount of risk the insurer is taking on.
Guaranteed Acceptance Life Insurance Plan For Type 1
If you’ve been declined for life insurance in the past, don’t assume you can’t get a quality insurance plan to protect your family. One excellent option is to buy a no medical exam policy. These policies will allow you to be accepted for coverage without being required to take a medical exam.
These plans are an excellent option for type 1 diabetics who are not in the best health. Everyone deserves to have insurance protection, and your health shouldn’t prevent you from getting it.
There are several disadvantages to no medical exam policies, and it mainly boils down to cost. Since the insurer is taking on a higher risk for you, you will be charged a higher premium.
Additionally, there is going to be a low limit on how much insurance you can buy through one of these plans. In most cases, an insurance company will not sell you enough protection for you and your family. Not having enough life insurance could leave your family with additional debts and expenses.
With most of these plans, you’ll only be able to purchase $250,000 worth of coverage, or even less than. For most families, this won’t be nearly enough life insurance. One of the alternatives is to purchase a no exam plan. These plans don’t require a medical exam, but they will have health questions.
There are no exam plans which will give you $500,000 worth of coverage.
Before you purchase any life insurance plan, it’s vital you calculate how much coverage your loved ones will need if something tragic were to happen to you. If you need any help deciding how much life insurance you should buy, our agents would love to walk you through the calculation process.
How Diabetics can Improve Their Chances of Obtaining Life Insurance Coverage
In order to improve your chances of obtaining life insurance for diabetics, there are several things you can do.
First, it is important to manage your condition. This means taking any medications as prescribed, as well as adhering to a proper diet and exercise regime.
Lowering your A1c levels and keeping your glucose levels in healthy ranges can make a huge impact on your chances of being approved for a life insurance policy, but it can also save your money on your monthly premiums.
The healthier you are the less of a risk you’ll pose to the insurance company, which translates into lower monthly fees.
In addition to controlling your diabetes, you should also apply for coverage through an insurance professional who has a focus on working cases of life insurance for diabetics. Such companies will be much more versed in knowing which insurers accept applicants with this particular condition, and what paperwork is required for the application submission.
In working with this type of company, you are also much less likely to run into delays in the underwriting process due to missing documentation – ultimately resulting in getting the life insurance coverage you need much more quickly.
Life Insurance Options
Your families financial future depends on you making the correct life insurance purchase. As you step into the world of life insurance coverage, there are multiple types of policies, plans, and riders can make your decision confusing. However, the two main types of coverage are term life plans and whole life policies. Both of them has different benefits you should take note of to ensure you’re getting the best plan.
The most popular options for life insurance protection is a term life insurance plan. These plans are bought with a pre-determined expiration date, and after the date the plan is no longer active, which means you’ll have to reapply for coverage.
Because these plans are going to expire, they are more affordable than other choices for life insurance. If you’re looking for the cheapest life insurance protection, term insurance plans are a great route to take.
The other broad type of life insurance is a whole life plan. These plans are permanent coverage. As long as you continue to pay the premiums for the plan, you’ll have insurance coverage. If you don’t want to worry about having to reapply for life insurance in the future, then whole life plans are a great way to get it.
Best Life Insurance Companies for Type 1 and Type 2 Diabetes
To get you started on your search, we’ve made a short list of the best companies for applicants with diabetes.
Transamerica Life Insurance Company
Transamerica Life Insurance Company is one of the world’s leading insurance and financial services companies.
This company provides insurance and investments to over 19 million customers around the world. The firm has been in the business of offering insurance and financial advice for more than 100 years.
Today, Transamerica offers a wide variety of life insurance products, including the following types of coverage:
- Term Life Insurance – Transamerica’s term life insurance products offer some different variations to choose from. This “pure death benefit protection” product can provide policyholders with an affordable rate to obtain an ample amount of death benefit for survivors.
- Whole Life Insurance – Transamerica also offers a whole life insurance product which provides both death benefit protection, along with a tax-deferred cash value build up. Provided the premium continues to be paid, coverage will remain in force throughout the remainder of the insured’s life.
- Universal Life Insurance – Universal life insurance is also considered to be permanent life insurance protection. It, too, offers death benefit protection and cash value build up. Universal life insurance, or UL, is considered to be more flexible, however, in that the policyholder can choose how much of their premium will go into the cash value and how much will go into the death benefit portion of the policy at any given time.
- Variable Universal Life Insurance – Variable universal life insurance is considered to be a type of permanent life insurance. This product offers both a death benefit, along with an underlying investment component that is flexible for the policyholder.
- Accidental Death – With accidental death coverage, policyholders can add additional benefit coverage to their policies should they pass away in a covered accident.
New York Life Insurance Company
New York Life Insurance Company has been in business for more than 170 years. The company has great ratings, and it offers a good number of life insurance products – including term life, whole life insurance, universal life insurance, and variable life insurance policies.
Also, all of the coverage options we consider to be standard for life insurance are provided with New York Life’s plans. These are inclusive of a cancellation rider which will return the balance of a policy to the insured, as well as a survivorship rider that will extend the coverage to a spouse or other household member.
New York Life also has other life insurance rider options, which include a return of premium, and a conversion policy option, which allows the term life insurance policyholders the flexibility of converting to a whole life policy as their policy ages.
Amica Life Insurance
Amica Life Insurance is also known for being one of the best life insurance companies for diabetics. For more than 100 years, the Amica companies have built a reputation for providing high-quality customer service. In addition, Amica has attained the Ward’s 50 Top Life-Health insurance company award for safety, consistency, and superior performance for many years.
This company offers both level and renewable term life insurance, as well as whole life insurance. The level term product is offered in coverage amounts of between $100,000 and over $1 million, with coverage periods of 10 years, 15 years, 20 years, 25 years, and 30 years. Amica also has an annual renewable term life insurance product that offers coverage amounts of between $250,000 and in excess of $1 million, with a term period of one year. The company is known for recently reducing its term life insurance rates, as well as for offering discounts on coverage amounts of $250,000 or more.
Regular whole life coverage is offered in amounts of $25,000 and up, with simplified issue whole life policies being offered in coverage amounts of between $5,000 and $25,000. These policies will last throughout the remainder of an insured’s life, provided the premium continues to be paid.
In addition, to being known for its low rates on coverage, Amica has attained great insurance company ratings, such as an A+ (Superior) from A.M. Best, which is a leading authority on insurance company financial stability. The company will be there when you need them – which is essential for your peace of mind.
Taking the Next Step
When you’re ready to move forward with applying for life insurance, the next step entails obtaining life insurance quotes from the appropriate insurers which offer life insurance for diabetics. By filling in the form on this page you can start the process.
Life insurance gives you peace of mind and financial coverage you and your loved ones deserve. There is nothing more important than planning for your future and knowing your family will have the funds they need to get through a difficult time. Planning for your families life after your death is not a fun or exciting thought, but its key to make sure you do something to protect them.
We are also here to help you with any additional questions or concerns you may have regarding life insurance and finding a policy to fit your specific coverage needs and premium budget.
Because of our experience with people classified in the higher risk life insurance categories we are able to make sure you get matched with the insurance companies will get you the best rates. If you ever have any questions or need advice you can contact us at 888-229-7522 and one of our life insurance specialists will be there to help.