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Living with diabetes can be difficult. While it might be equally challenging to find a reasonably priced diabetic life insurance, it is imperative that you choose the right coverage and protect your loved ones.
Fortunately, several companies specialize in offering life insurance to people with diabetes.
Keep reading to understand how to find the best life insurance policy if you have diabetes.
Life Insurance for Diabetics
You are not alone if you have diabetes.
More than 32 million Americans are currently estimated to have type 2 diabetes as of 2022, accounting for over 10% of America’s population.
Interestingly, a sizable portion of the 32 million people don’t even know they have the disease.
The unsettling fact is that diabetes is one of the major causes of death in the United States. It can result in kidney failure, blindness, heart problems, and stroke.
With the rising rates of diabetes, diabetic life insurance plans have become more prevalent in the country.
So, how can you get life insurance coverage as a person with diabetes?
The majority of insurance providers use a glycosylated hemoglobin (A1C) test to determine how well you manage your diabetes. A lower A1C level would mean a lower premium for your coverage.
If you are unable to maintain a low A1C level, chances are you may not be eligible for life insurance coverage at all.
Keeping your diabetes under control is crucial for obtaining the lowest life insurance rates.
However, it is generally difficult to predict the premiums of your policy until it has gone through the underwriting process.
Finding a “diabetic friendly” life insurance policy depends on the risk classification the life insurance provider assigns you.
The Life Insurance Rate Classifications
Here are the Life Insurance Rate Classifications for diabetic people.
- Preferred Plus (Table A) – Plans under this category are priced at 25% above the standard rates
- Preferred (Table B) – These plans are priced at 50% above the standard rates
- Standard Plus (Table C) – These plans are priced at 75% above the standard rates
- Standard (Table D) – Plans in this category are priced at 100% above the standard rates
Life Insurance for People with Pre-Diabetes
According to the American Diabetes Association, 87 million people in the United States may have pre-diabetes. If you have been recently diagnosed with pre-diabetes and are wondering what to do, life insurance is certainly an option for you.
If you do not have life insurance, you are recommended to enroll in a plan as soon as possible before your medical condition worsens.
Pre-diabetics in good health who are under a doctor’s direct supervision can always get life insurance coverage at an affordable rate.
Sometimes, you may still qualify for a preferred rate class if you manage your diabetes with proper diet and medical assistance.
Controlling Diabetes with Proper Diet
As a diabetic, you are aware that controlling your blood sugar levels is essential to maintaining good health. But you might be surprised to learn that having a balanced diet can also help you obtain insurance coverage at a cheaper rate.
Many people with adult-onset can manage their condition by following a strict diet and without any medications.
Many insurance companies are willing to provide coverage to diabetics who follow a healthy diet plan. With a strict diet, you can qualify for a preferred or standard rate classification.
Life Insurance for Diabetes Type 2
You need to take extra care to stay healthy if you have been diagnosed with diabetes. This includes taking proper medication, maintaining a balanced diet, and exercising frequently.
The good news is that you can also purchase life insurance if you are above 50 and have type 2 diabetes. Most life insurance providers will typically consider you as standard risk if your diabetes level is under control with medication. In fact, your insurance rating will be similar to an average person without diabetes.
Protective Life, Prudential, and Pacific Life are a few insurers who provide standard premium rates for well-controlled diabetics.
Few insurance providers have even revised their policies and are now offering standard plus ratings to people who do not smoke, are not overweight, and have a clean medical history. Banner Life and American General are two such insurers offering a standard plus rating to well-controlled diabetics.
Interestingly, both Banner Life and American General are also providing lower substandard rates for diabetics who are overweight and have difficulty controlling their A1C.
Life Insurance for Type 1 Diabetes
It’s a little trickier to find affordable life insurance rates for people with type 1 diabetes. However, insurers are becoming more aggressive and providing cheaper rates each year.
The majority of life insurance companies offer coverage with a substandard rating for type 1 diabetes.
This means the rate of premiums will be much higher. An applicant with type 1 diabetes will rarely be eligible for a standard rating.
Few companies do not offer insurance plans at all for type 1 diabetes. In other words, if you are diabetic from a young age, you will not even be eligible for coverage from such companies.
For people who use insulin therapy from an early age to control diabetes, it would be beneficial to opt for a simple or guaranteed issue plan without undergoing an exam.
Applying for Life Insurance Being a Diabetic
Prospective life insurance buyers diagnosed with diabetes should be careful and only work with specialized insurers who understand the risk variables involved in underwriting people with diabetes.
Can I find reasonable coverage plans without having to undergo a medical exam?
Yes, some companies are willing to offer you a policy without an exam if you have type 2 diabetes only.
You should be prepared to pay higher premiums since your insurance company cannot evaluate the risk factors accurately.
Hence, it would be wise to undergo a medical exam with companies that use clinical underwriting.
Clinical underwriting evaluates your total medical history and level of control when you apply for life insurance coverage.
Insurance companies that do not follow the clinical underwriting process automatically issue a generalized substandard rate to their applicants who are diabetic. Hence, if you have diabetes and want to apply for life insurance coverage, it is recommended you follow the step-by-step process mentioned below.
How Clinical Undertaking Works:
- Your medical history is first assessed to align your needs based on your diabetic condition.
- Your application process starts after this, and you are required to complete a life insurance blood pressure test, blood and urine sample, and height and weight measurement.
- It is important for you to provide the following information to your nurse:
- Name, address details, and contact number of your doctor
- Ensure your physician has all the documentation for your treatments
- Ensure you have a list of all the prescriptions you are currently taking and the dosage for each.
- Then, your required medical summary is reviewed, including your regular check-ups with your doctor for diabetes.
- Your medical profile is finally circulated to different life insurance companies to get you the best rates.
Types of Life Insurance for Diabetics
Several life insurance options are available for diabetics, and you can choose the one that best suits your needs.
The most popular forms of life insurance policies are listed below:
- The most basic form of life insurance coverage is term life insurance. It lasts for a predetermined amount of time (often 10–30 years) and pays out if you pass away during that time.
- Unlike term life insurance, permanent life insurance has no predetermined end date. It can be utilized as an investment vehicle and lasts the rest of your life.
Term life insurance rates are cheaper since it only covers a predetermined duration. On the other hand, permanent life insurance is much more expensive for people with diabetes as it provides coverage for their entire lifetime.
If you want to opt for term insurance, we advise you to choose the highest lock-in period possible. Otherwise, going for permanent life insurance coverage makes a lot of sense as you get lifetime coverage.
Tips for Purchasing Life Insurance for Diabetics
- If you have recently been diagnosed with diabetes, we recommend that you wait at least six months for any possible coverage to be based on a track record of control.
- For long-term diabetics, keeping your A1C below 8 before opting for life insurance coverage is recommended.
- Opt for a “clinical underwriting” diabetic life insurance carrier policy.
- Age and health are two factors that influence life insurance prices, so while you’re still healthy enough to be covered, you should opt for the largest amount of coverage you can afford.
- People with type 2 diabetes have a better chance of getting cheaper premium rates when they take an exam while applying for insurance.