Regretfully, one in ten Americans are diabetics which makes diabetes one of the most diagnosed health conditions in the U.S. Additionally, the CDC estimates that an additional 8.5 million people in the U.S. have undiagnosed diabetes.
If these numbers aren’t alarming enough, 96 million people are considered to have prediabetes and if they do not address the situation (usually lifestyle change) they will eventually be diagnosed with diabetes. However, finding affordable life insurance if you are a diabetic may be easier than you think.
When you eat, your body converts the food into glucose which is the fuel supply that your body uses for energy. Insulin is an important hormone that your body produces in order to convert the glucose (sugar) into a form of energy that it can use.
When you are diabetic, your body is unable to produce insulin, or the insulin that it does produce is not being used effectively, thus causing sugar to build up in the blood. It’s as if the insulin is floating around in your body instead of going into your cells.
Type 1 Diabetes: Type 1 diabetes is better known as insulin-dependent diabetes or juvenile diabetes. A patient with type 1 diabetes has a pancreas that does not produce insulin, so they self-administer by using a syringe or insulin pump. Frequently children and teens have type 1 diabetes and insurers will evaluate it differently.
Type 2 Diabetes: Type 2 is the most common of the three types of diabetes with approximately 90 percent of diabetics having type 2. Although a patient with type 2 diabetes can produce insulin, it is not effective at reducing or resisting glucose levels or their body does not produce enough insulin to meet their body’s needs.
Gestational Diabetes: This form of diabetes occurs in pregnant women who probably did not have any symptoms of diabetes until they became pregnant. When a woman becomes pregnant, hormonal cells can make cells less responsive to the insulin your body produces, resulting in a buildup of glucose in the blood.
Although diabetes can be well-managed with medication and lifestyle changes, the disease can eventually lead to a significant risk of cardiovascular problems such as coronary artery disease, angina, heart attack, and atherosclerosis.
Needless to say, since diabetics can end up with life-threatening illnesses and diseases, life insurance companies take a long look at applicants with diabetes to better understand their disease in order to make a legitimate health classification.
In this article, we will focus on the underwriting and the companies we consider “diabetes-friendly” rather than the disease.
Diabetes is just another risk factor that life insurance companies consider. However, a diabetes diagnosis doesn’t completely eliminate your chances of a reasonable price. The severity of your diabetes, the type of diabetes you have and your treatment plan will all affect how much you will pay for the life insurance
Some people are eligible for more affordable insurance coverage if they effectively manage their diabetes. These rates depend on a person’s health classification, which is determined by the underwriting process.
The health classifications start at Preferred Plus, Preferred, Standard Plus, and Standard. Some people are assigned a table rating if their case is considered severe.
Although at first it will likely seem annoying, it’s important to understand that underwriters need to measure your health risk to determine your health classification. Be prepared to provide the following information even though you consider it intrusive:
QUESTION | DETAILS REQUIRED |
What is your diabetes diagnosis? | Have you been diagnosed with Type 1, Type 2, or gestational diabetes? |
How old are you now and when were you diagnosed? | How long you’ve had diabetes is important. The longer you’ve had it, the more likely you will experience side-effects. Being diagnosed later in life makes you a better risk to the company. |
Who is the doctor managing your diabetes? | The underwriter will want details like phone numbers and addresses of all physicians you’ve seen in the two or three years along with the management plan for your diabetes. |
Your historical A1C levels | The A1C level measures the severity of your conditions and indicates how well it is being managed. A score of 7.0 and below indicates the management plan is being followed. Levels greater than 7.5 indicate a higher risk. |
What is your management plan? | Underwriters will ask for details about your diabetes management which will include medication details and lifestyle and diet changes. |
Your medical history | Underwriters will ask for your current height and weights and the medical history of your family. They will also ask about other health conditions you may have and the medications you are taking, if any. |
Blood glucose levels | Underwriters will ask about recent blood glucose levels and whether you check it routinely. 135 and below is favorable but if it’s higher but under control that will be okay as well. |
Current Blood Pressure | Whether you have diabetes or not, high blood pressure will likely impact your life insurance rates. |
Current cholesterol levels | If your LDL is high, there is a risk of coronary artery disease. |
Have you had a Microalbumin Test? | This test is used to detect kidney damage which is a common side effect of diabetes. |
Diabetes associated complications or conditions | There are a number of health conditions that are associated with or a result of diabetes. Your underwriter will ask for details about any of these conditions. |
The type of policy you choose should be based on the financial risks that you are attempting to mitigate (reduce or eliminate). For example, if you are considering income replacement, you’ll need to calculate living expenses for your surviving loved ones, mortgage payoff, college tuition, and the continuation of retirement planning for your spouse or partner.
We recommend that you ask an agent to calculate this for you by using a “life insurance needs analysis” program. If you’d prefer to calculate your insurance needs yourself, there are several calculators available online or use the LifeInsure.com insurance calculator.
In most cases, a younger family with one or two children will need at least a million dollar death benefit and if that is the case for you, term life insurance will be the most affordable method to cover your financial risk.
If, however, you prefer having life insurance with a cash component that you can build over time, take a look at Universal Life insurance or a mixture of Universal Life and Term Insurance.
Deciding whether to shop for fully underwritten life insurance or no exam life insurance generally depends on how much insurance you require and whether you are opposed to having a medical exam.
Fully underwritten underwriting will always require a medical exam and provides the underwriter with a clear picture of your health. If your life insurance needs are $2 million or higher, it’s unlikely that an insurance company will waive the medical exam requirement.
However, if you are totally against having a medical exam or if you want you life insurance policy issued in a matter of days instead of weeks or months, there are several insurers out there who offer no-exam term life insurance with a death benefit of up to \$2 million.
IMPORTANT: It’s never a good idea to select a no-exam life insurance policy in an attempt to not disclose a health issue. When you sign the application, you are acknowledging that every answer you provided is true and correct to the best of your knowledge. Intentionally omitting medical or lifestyle information could be grounds for the insurance company to deny a claim if you die in the first 2 years.
Not every applicant that has diabetes will be offered coverage. Typically, those applicants that demonstrate they are not trying to manage their diabetes and who appear not to be serious about their doctor’s recommendations will likely be declined coverage. But all is not lost. If you’re denied life insurance because of diabetes, your agent is likely to offer you a guaranteed issue policy that can be issued regardless of you having type 1 or type 2 diabetes
Although priced higher than traditional life insurance, a guaranteed issue policy allows those applicants who have been denied life insurance because of diabetes to get a policy in place quickly as long as they are willing to accept the following:
A two or three-year waiting period where death from natural coverage will not be covered, but all premiums will be returned. After the waiting period expires, the full death benefit is available for death for any reason. There is typically a limit of $25,000 to $30,000 on the death benefit. The rates for guaranteed issue insurance are much higher than a traditional policy.
This list generally includes companies that are represented by independent insurance professionals and not the flagship companies like State Farm or Allstate. Most independent insurance professionals like LifeInsure.com represent many highly-rated life insurers who are willing to consider high-risk cases instead of an automatic decline.
Here are the companies we recommend:
COMPANY | A.M. BEST RATING | POLICIES OFFERED |
Best for Type 1 Diabetics including whole life insurance for diabetes | A+ | Term Life Insurance Whole Life Insurance Universal Life Insurance |
Best for Type 2 diabetes life insurance | A+ | Term Life Insurance Universal Life Insurance Indexed Universal Life Variable Universal Life |
Best for Low-Cost Term | A | Term Life Insurance Final Expense Whole Life Guaranteed Issue |
Best for Medical Issues | A+ | Term Life Insurance Universal Life Insurance Indexed Universal Life Variable Universal Life |
Best for No-Exam Policies | A+ | Term Life Insurance Universal Life Insurance |
For more information about finding affordable life insurance with diabetes, call us now at (866) 868-0099 or contact us through our website 24/7.
LifeInsure.com® is a registered
trademark of Intramark Insurance,
Services, Inc. © 2024.
Privacy Policy
Legal Notice & Disclaimer
Here is the legal information we’re required to provide you. LifeInsure.com, a California corporation and subsidiary of Intramark Insurance, is a licensed independent insurance broker. The information provided on this site has been developed by LifeInsure.com for general informational and educational purposes. We try hard to ensure that this information is up-to-date and accurate. Any insurance policy premium quotes or ranges displayed are non-binding. The final insurance policy premium for any policy is determined by the underwriting insurance company following application.
