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By Mark Cussen Mark Cussen's Twitter profile
Life insurance is one of the most foundational components of any well-crafted financial plan. It can provide tax-free income to use in any manner that you like, and it can also provide your heirs with a financial legacy. But qualifying for life insurance can be a challenge for diabetics, who must disclose this fact on their medical questionnaire. Diabetes can result in higher premiums in many cases, and those with type 1 diabetes are particularly susceptible to this. If you have type 1 or even type 2 diabetes, you may be asking, “Can I still get affordable life insurance coverage? If so, where do I go for it?”
The short answer is yes, people who have diabetes can indeed get affordable life insurance coverage, provided that they do not have other major health issues and have kept their condition in check for at least the last six to 12 months. Those who are otherwise healthy and can keep their blood sugar numbers within the normal range will have little difficulty in finding quality life insurance coverage. Those who are in poorer health or do not have good blood sugar readings will most likely be rated up by the majority of life insurance carriers. This means that their monthly premiums will be higher than for those who are otherwise in good shape. And those with type 1 diabetes will usually have higher premiums than those with type 2 diabetes.
Diabetics can get the same types of life insurance coverage as those who do not have this condition. They can get either term or any type of permanent policy in any amount that they can afford. A diabetic can purchase whole life, universal life, variable universal, or indexed universal life insurance policy if they can cover the cost of the premiums.
There are at least a few life insurance companies that offer policies that are custom-tailored for people with diabetes, so those with this condition may want to take a look at one of these policies before searching elsewhere. Some higher-priced policies such as guaranteed issue life insurance have simplified underwriting for diabetics while others require more medical information. But the policies for which it is easiest to qualify will always also charge the highest premiums.
Several factors can play a role when it comes to underwriting diabetics for life insurance. Some of these factors include:
As mentioned previously, those with type 2 diabetes will have an easier time qualifying for life insurance than those with type 1 diabetes. Those in the latter category can expect to pay higher premiums for the same amount of coverage and policy type. Those who are insulin-dependent will most likely pay the highest premiums of all.
Diabetics who have other major health conditions such as cancer, heart disease, high blood pressure that is not controlled by medication or diet, or obesity will have a harder time qualifying for life insurance coverage of any kind. Those with high blood pressure will need to take action and stay on their medications. Those who are obese need to try and lower their weight through diet and exercise. Diabetics with other health conditions that are severe enough may be declined for coverage by most insurers.
There are a host of other factors that can determine whether a diabetic can qualify for life insurance. The age at which the insured was diagnosed, his or her family medical history, the medications that he or she is taking, his or her age, and blood sugar level are also usually taken into account. Faithfully taking medications according to directions, controlling your diet and exercising can lessen the impact of many of these variables during the underwriting process.
Those who receive a diagnosis of diabetes after they have purchased a life insurance policy have nothing to worry about. If a newly-diagnosed diabetic has purchased a permanent life insurance policy, then they are still covered for life, because permanent policies only require one initial medical exam before issuance. If a diabetic has term coverage, then he or she will have nothing to worry about until the end of the term. When the time comes to renew their coverage, they will have to report their condition on their new medical exam questionnaire. At this point, they may be either rated up so that their premiums are higher or else denied coverage altogether.
The answer to this will depend largely upon the type of diabetes you have contracted and your blood sugar levels. If you have other conditions in addition to diabetes such as heart problems, then it may be difficult for you to find affordable coverage when the time comes to renew. If you can show that you are controlling your diabetes with medications, a good diet, and exercise, then you will most likely be able to renew your coverage at the end of the term, although your premiums will probably be higher.
If you can show that your A1C levels have improved after your initial diagnosis, then you may be able to reduce your premiums at the end of the term if you have a term policy. Unfortunately, there is probably not much you can do to improve your premiums if you have permanent coverage. Of course, you could simply cancel your current permanent policy and buy a new one, but then you’ll also be that much older, and you may have also developed other health conditions in the meantime. You should probably consult with both your life insurance agent and your financial advisor before attempting to do this.
