What do you know about life insurance for diabetes? In most cases, if you have diabetes and the condition is under control, you may get life insurance.
However, coverage will almost certainly come at a higher cost than coverage for someone who does not have diabetes.
Life insurance may still provide financial security for your loved ones, regardless of whether or not you have a pre-existing ailment.
Therefore, life insurance is a worthy option irrespective of whether or not you currently have a pre-existing condition.
What are the possible reasons for a life insurance denial?
Providers may be unable to provide life insurance for diabetics in some conditions; for example, not all providers can assist smokers or clients with additional cardiovascular risks, such as angina, heart attack, or stroke.
In other cases, they may want additional information from your primary care physician, for example, if you have diabetes and are presently pregnant or if the findings of your HbA1c test indicate that you have high blood glucose levels.
Factors that determine the cost of life insurance for diabetes
Below are the charges for the different types of diabetes;
The cost determinants of life insurance for people with Type 1 diabetes
Someone with Type 1 diabetes will most certainly have difficulty qualifying, much alone finding affordable coverage when it comes to life insurance.
In part, this is because someone with Type 1 diabetes must always utilize needles or medications to keep the illness under control.
Your life insurance premium will be taken into account by various criteria, including your age, blood sugar levels, food, activity, medication, and whether or not your diabetes is impacting other organs.
The cost determinants of life insurance for people with Type 2 diabetes
Patients with Type 2 diabetes, on the other hand, “are far more likely to be uninsurable.” Generally speaking, Type 2 diabetes is more straightforward to control than Type 1 since people with Type 2 diabetes are still making insulin.
Though you may locate life insurance, be prepared to be bombarded with quotations. , having Type 2 diabetes has a “substantial influence” on the cost of life insurance.
In addition, younger candidates with Type 2 diabetes will notice more significant increases in rates than older applicants with the condition.
For example, consider the following for a term life insurance policy with a 20-year term:
- Women with Type 2 diabetes who are 25 years old spend 215 per cent more on health insurance premiums than their non-diabetic peers.
- A 55-year-old girl with Type 2 diabetes spends 68 per cent more on health insurance premiums than her non-diabetic peers.
HOW YOUR TYPE OF DIABETES AFFECTS YOUR LIFE INSURANCE
If you have diabetes, you may be able to get life insurance. On the other hand, your coverage options may be restricted, and a policy will almost certainly cost more since insurers may consider you to be a greater risk.
The kind of diabetes you have, in addition to other health problems, will have a considerable influence on how life insurance companies examine your application because each form of diabetes has a distinct impact on your health and therefore requires a different approach.
People with type 1 diabetes
Compared to those with Type 2 diabetes, people with Type 1 diabetes are deemed to be at higher risk, making it more challenging to obtain life insurance.
Type 1 diabetes is considered less controllable by life insurers, mainly because it frequently necessitates insulin to maintain control.
When analyzing risk, life insurance companies consider the age of the diagnosis because a diagnosis later in life implies fewer years during which it will influence your body and health.
Type 1 diabetes, on the other hand, is frequently diagnosed in youngsters and teenagers, which means you’d be considered a more significant risk when asking for life insurance.
People with type 2 diabetes
Suppose you have type 2 diabetes and can control it with lifestyle changes or oral medication and have not experienced any problems.
In that case, life insurance companies will consider you to be a reduced risk for them to insure you. Being diagnosed in adulthood increases your chances of being evaluated positively by insurance and the rarity of the diagnosis.
Being diagnosed with Type 2 diabetes should not prohibit you from receiving a life insurance policy as long as you are generally healthy and haven’t had any difficulties. However, having the condition will affect your life insurance grade and increase your pay.
Pregnant women can develop gestational diabetes due to hormonal changes in the body; this is usually a transitory illness that disappears shortly after birth.
However, that’s not always the case, and it can lead to the development of Type 2 diabetes in particular females.
As a result, life insurance companies will consider you a higher risk and charge you a higher premium than a woman who does not have gestational diabetes.
If you are already pregnant and have gestational diabetes, you might want to hold off on applying for life insurance coverage several months after giving birth.
The issue may disappear after pregnancy, in which case you’ll have a better chance of qualifying for life insurance and will likely obtain reduced prices as a result.
Types of life insurance policies available for diabetes
Here are the different life insurance policies for diabetes;
Term life insurance
Term life insurance is often the least expensive form of life insurance to purchase and maintain, and it ensures that your rates will not fluctuate throughout the policy’s term, which can be 10, 15, 20 or 30 years.
It is possible to replace your earnings during your prime working years with the proceeds of a term life insurance policy, which can also assist your family pay off debts.
Permanent life insurance
The cost of permanent life insurance is higher than term life insurance. Permanent life insurance, such as whole life insurance or universal life insurance, offers a death benefit to your dependents in the event of your death and gives the ability to accumulate cash value within the policy whilst you are alive.
You can utilize the cash value to augment your retirement income or pay for medical expenses if you are disabled.
Permanent life insurance covers you for the rest of your life, as long as you continue to pay the required payments.
Guaranteed issue life insurance
With guaranteed issue life insurance, you will not be turned down for coverage, and you will not be required to undergo a medical exam.
A guaranteed issue life insurance policy maybe your best option as a last resort if you have severe diabetes and are unable to get a regular policy.
Guaranteed issue insurance provides death payments that are progressively higher in value. The death benefit would be reduced if you die during the first two years of owning the policy, and your beneficiaries do not get the whole amount.
Instead, they receive a sum equal to the premiums you paid, plus a tiny amount of interest.
Before you acquire this form of policy, consult with a life insurance professional to see whether you are turned down for other types of coverage.
Guaranteed issue life insurance is often more expensive than different types of life insurance due to the level of coverage you receive.
Group life insurance
It’s also a good idea to make the most of any group life insurance coverage you may have via your job.
This sort of life insurance protects all employees as a group, and none of the individuals is obliged to disclose any medical information about themselves.
Death benefits for group life insurance are often minimal, frequently consisting of a year’s pay or a lump sum.
If you can purchase additional coverage without showing “insurability,” take advantage of this opportunity.
HOW TO FIND THE BEST LIFE INSURANCE COVERAGE FOR SOMEONE WHO HAS DIABETES
These considerations will directly impact the types of policies you select as well as the amount of underwriting necessary to qualify.
Term life insurance plans are the most affordable cost per dollar of coverage since they are only valid for a defined length of time, such as 10 or 20 years, and do not accrue any monetary value over time.
So, for example, if you’re apprehensive about your children’s ability to pay for college if you die due to diabetes complications, you may want to consider purchasing term insurance that will cover them until they reach the age of majority.
Most term plans also let you convert them into permanent insurance without going through any further underwriting, which means that you would not take diabetes complications into account if your situation changes.
On the other hand, permanent life insurance may be preferable if you are aware that you wish to leave an inheritance or guarantee that your spouse receives assistance regardless of when you die away.
Just keep in mind that permanent life insurance plans that have a cash value component, such as universal and whole life insurance, would be the most expensive choices to consider.
Because you are already paying higher rates due to your diabetes, you may wish to compare the cost of these policies to the price of a guaranteed universal life insurance policy, which is typically more reasonable.
Insured universal plans are less expensive than other types of insurance because they have little or no cash value component, yet they nevertheless provide lifelong coverage.
No health exam versus fully underwritten life insurance
No-medical-exam term insurance plans will typically provide a maximum of $500,000 in coverage, whilst no-medical-exam whole life insurance policies would typically provide a maximum of $50,000 in coverage.
The insurer will still want you to complete a diabetes questionnaire and provide data from your physicians even if you prefer not to have a medical exam.
In other words, even if you do not submit to a paramedical examination, your insurer will very certainly learn whether or not you have poorly managed diabetes or identified with complications.
However, suppose you suspect that you may be suffering from diabetes-related side effects or problems that are not yet detected.
In that case, a no-medical-exam life insurance policy maybe your best option. Consider the following scenario: you’ve been experiencing numbness in your hands and feet but haven’t yet been diagnosed with neuropathy.
Suppose you apply for a fully underwritten term life insurance policy, which is difficult during the paramedical test. In that case, you may not be allowed the opportunity to purchase the policy.
A further benefit of the insurer’s analysis is that the data will be accessible to other life insurance firms, including those that provide no-exam plans.
However, if you first filed for no-medical-exam insurance, the insurer would still consider you a more significant risk owing to your diabetes.
Still, they would only evaluate your risk based on your survey and medical records rather than your physical examination.
When applying for no-exam insurance or fully underwritten coverage, you must address the questions truthfully and completely.
If you fail to do so, they may revoke your life insurance coverage and may refuse your family’s life insurance claims if you die.