It’s a common assumption that if you are diabetic you cannot get life insurance. Fortunately, that is the mistaken assumption – at least in many cases.
There are policies available for diabetics, typically term life insurance, that may enable you to get at least some level of coverage.
How common is diabetes?
According to the American Diabetes Association, there are 25.8 million people in the US with diabetes, or 8.3% of the total population.
This includes 18.8 million diagnosed cases, and an estimated 7 million undiagnosed. In addition, it is estimated that 79 million people are pre-diabetic.
Diabetes is a major cause of high blood pressure, heart disease, stroke, kidney disease, nervous system disease (neuropathy), blindness and amputations.
Direct medical costs are $176 billion per year, so it’s easy enough to see why insurance companies tread lightly when it comes to diabetes.
Choose insurance companies that specifically take diabetics
Just as is the case with other major diseases, such as heart disease and cancer, the number of people affected by diabetes is so large that insurance companies can’t ignore the group as a potential market.
For that reason, there are insurance companies who will accept life insurance policies for diabetics.
The key is to locate those companies that specialize in diabetics. It’s not just a matter of finding companies that will approve a policy for a diabetic at an affordable rate, but also one that understands the disease sufficiently to underwrite your application in an intelligent manner.
If you are a diabetic, you will need to work with life insurance companies that will use clinical underwriting to evaluate your application.
Clinical underwriting looks at your overall level of health, and not just at the fact that you are diabetic.
They will be interested in how well you are managing your diabetes, and consider that in the policy decision and in setting your premium rates.
There are various insurance companies that accept life insurance for diabetics, so if you find one, don’t be afraid to do some shopping to see if you can’t get a better rate before settling on a company.
Be sure that you are properly managing your diabetes and your overall health
There are some factors you can’t control when it comes to diabetes, and some that you can. The important thing is controlling what you can.
Insurance companies prefer providing life insurance policies for type two diabetics for whom the onset occurs after age 50, and without any complications related to the disease.
Those are factors you can’t control, but the fact that either has happened to you doesn’t mean that you won’t be able to get life insurance.
At the same time, you need to control what you can.
Insurance companies will look at how well you’re managing your diabetes, as indicated by factors such as your hbA1c level, your weight, and diet and exercise habits – not only in deciding to approve your application, but also in determining your premiums.
Overall health is always a factor in insurance underwriting, but because you are a diabetic you have to be even more focused on your health.
In addition, it should go without saying that it’s always better to apply for life insurance before any complications set in.
There may be no perfect policy
While there is an excellent chance that you will find a life insurance policy as a diabetic, is also important to realize that it may not be your idea of a perfect policy.
For example, you may find that the cost of a $250,000 policy is prohibitive, forcing you to accept a policy for no more than $50,000.
Though that might not be what you are going for, it will be far better than having no life insurance at all.
Though life insurance coverage options for type 2 diabetics have expanded in recent years, it remains a market with limitations.
If you keep your expectations in check, you may come away with at least a decent level of coverage at an affordable price.
Never give up, and always work with an insurance agent or broker who specializes in high risk life insurance policies such as diabetics.
