Understanding Life Insurance for People with Diabetes
September is recognized as World Life Insurance Awareness Month, a time to highlight the importance of life insurance in providing financial protection for families. While the reasons for obtaining life insurance vary from person to person, it is often seen as a crucial step in securing one’s family’s future. However, for individuals living with diabetes, the process of acquiring life insurance can present unique challenges.
Diabetes affects over 590 million people globally, and while it requires careful management to prevent complications such as kidney disease or cardiovascular issues, it does not necessarily disqualify someone from obtaining life insurance. In fact, many individuals with diabetes can still qualify for coverage, though they may face different terms and conditions compared to those without the condition.
Can You Get Life Insurance If You Have Diabetes?
Diabetes is a serious medical condition that impacts how the body processes glucose. This diagnosis means that individuals must monitor their health closely to avoid long-term complications. When applying for life insurance, having diabetes will likely influence the types of policies available and the premiums you’ll pay.
According to Matt Schmidt of Diabetes Life Solutions, “Any type of diabetes will lead to insurance companies wanting to know more about your health history. It isn’t an automatic decline, but a diagnosis means you are not going to be a ‘preferred candidate.’ For example, life insurance with type 1 diabetes will always mean your premiums are considerably higher compared to a person without diabetes.”
How Are Premiums Determined?
Life insurance premiums are based on a person’s overall health profile at the time of application. Individuals with preexisting conditions like diabetes are generally considered higher risk, which can result in higher premiums. This is because such conditions are associated with shorter life expectancies, making the insured a greater financial risk for the insurance provider.
Life Insurance for Type 1 Diabetes
Type 1 diabetes is an autoimmune disorder typically diagnosed in childhood, although it can also occur in adults. The longer a person has this condition, the higher their insurance premiums tend to be. Most individuals with type 1 diabetes will pay more than those with type 2, and they may have fewer options when it comes to policy selection.
Many insurers require a paramedical exam for applicants with type 1 diabetes, which can be inconvenient. Non-medical exam options are limited, and scheduling an exam can be challenging for some individuals.
Life Insurance for Type 2 Diabetes
Type 2 diabetes is the most common form of the condition and is often linked to lifestyle factors. Insurance companies tend to view applicants with type 2 diabetes more favorably than those with type 1. Chris Stocker of Diabetes 365 notes that “life insurance for diabetics, especially type 2, are going to see their rates to be pretty close to a person without diabetes. While most type 2’s are going to pay slightly higher premiums, many of them will qualify for a Standard rating.”
People with type 2 diabetes may find it easier to get approved for coverage, and some insurers even offer policies without requiring a medical exam. Certain companies may approve coverage of up to $2 million without additional blood work, depending on the applicant’s health status.
What Types of Policies Are Available?
There are two main types of life insurance: term and permanent. Term life insurance provides coverage for a specific period, such as 10, 20, or 30 years, and is generally more affordable. However, once the term ends, the policy expires, and the insured may need to reapply for coverage, which could result in higher premiums due to age or health changes.
Permanent life insurance, on the other hand, covers the insured for their entire life, with fixed premiums that do not increase over time. Some policies, like whole life insurance, also build cash value, which can be accessed by the policyholder.
Robert Schmidt of Burial Insurance Pro explains that “Burial insurance policies are very popular with people throughout the world. These are smaller amounts of whole life insurance that would cover funeral costs, final expenses, and end of life expenses. Policies are very expensive, and they provide amounts from $5,000 to $25,000 on average.”
Do I Have to Tell My Insurance Company About My Diabetes?
Yes, honesty is essential when applying for life insurance. On the application, there will be questions about your health history, including whether you have been diagnosed with diabetes. Lying about your condition is not advisable, as insurance companies conduct background checks and may detect inconsistencies through medical records or blood tests.
What Can I Do to Lower My Premiums?
Here are some tips to help reduce your life insurance premiums if you have diabetes:
- Maintain your blood sugar levels – Regular testing and using tools like continuous glucose monitors (CGMs) can improve your health profile.
- Exercise regularly – Physical activity helps manage diabetes and demonstrates a commitment to a healthy lifestyle.
- Avoid tobacco products – Using tobacco increases premiums, and combining it with diabetes can further raise costs.
Could I Be Declined for Life Insurance?
While no one can guarantee approval, it’s possible that one insurer may decline your application. However, others may approve it. Working with agents who specialize in insuring individuals with diabetes can increase your chances of finding suitable coverage.
By understanding the options and taking proactive steps to manage your health, individuals with diabetes can still obtain life insurance that protects their families.
