2024 Life Insurance with Type 1 and Type 2 Diabetes
Written by Daniel Ray, Life Insurance Expert |
✅
Fact Checked by
Lisamarie Monaco |
Editorial Disclosure
Obtaining life insurance with Type 1 and Type 2 Diabetes is not as challenging as one may think.
Life insurance for many, is more than just a policy—it’s a promise, a safeguard for the future, ensuring that our loved ones remain protected even in our absence. As straightforward as it might seem for some, the journey to securing this promise can become layered with complexities for individuals living with chronic conditions like Type 1 or Type 2 diabetes.
These conditions, as common as they might be, often introduce a maze of questions for potential policyholders. How does the world of insurance perceive diabetes? Will having diabetes automatically mean steeper premiums, or worse, potential policy denials?
And in the backdrop of these concerns, there’s often a lingering doubt: amidst the medical jargon and policy clauses, is it possible to find an insurance provider who truly understands the nuances of living with diabetes?
With this guide, we hope to shine a light on these concerns, dispelling misconceptions and charting a clearer path for those seeking to balance their health conditions with the quest for financial security.
As you journey through this article, you’ll uncover the intricacies of life insurance for diabetics, arming yourself with knowledge and confidence.
2020 vs. 2024: The Evolving State of Diabetes in America
In 2020, there were approximately 1 in 10 American adults who live with diabetes, according to the Centers for Disease Control and Prevention’s 2020 National Diabetes Statistics Report.
In fact, in 2023, 27.3 million people or 11.3% of the United States Population have diabetes. It is estimated that 28.7 million have already been diagnosed with diabetes, yet there are approximately 8.6 million people who have not yet been diagnosed.
Top 5 Things Life Insurance Companies Look at When Applying as a Diabetic
Life insurance companies will look closely at your diabetes and the way you’re managing it when deciding whether to issue a policy, which health class to put them in and how much they should charge.
There are five key factors that insurers use:
1. How Old Are You
The insurance companies are the ones that determine your age when they decide what rate you’ll pay.
They know if someone has lived with diabetes for ten years, it’s going to be harder on them in their old age than somebody who is twenty and just diagnosed today.
2. What Type of Diabetes Do You Have
Because of the lower risk factor, Type 2 diabetes is usually diagnosed in adulthood and can be managed with a healthy lifestyle and medication.
The tone should be witty to engage readers because insurers see Type 2 diabetics as less risky than those who have type 1 so you’re more likely to land in better health classes (such as Standard) which means paying a lower premium.
Many people are unaware that Type 1 Diabetes is much less common than the second type of diabetes. Generally, it’s diagnosed at a younger age and requires insulin therapy to keep it under control.
For those with Type 1, your health class will be assigned as Substandard with higher rates compared to others who don’t have this condition but if otherwise healthy enough shops around for cheaper premiums may receive them depending on what other conditions they do or do not possess in general!
If you have gestational diabetes, it is important to make sure that your insurer will treat this condition the same as they would a Type 1 or 2 diagnosis.
If you are pregnant and don’t apply for life insurance before becoming pregnant or during the first trimester of pregnancy, then there might be no way around paying more for your policy.
However, after giving birth some insurers can go back on their initial decision so maybe wait until then if possible.
3. How Bad is Your Diabetes
Getting your diabetes under control may help you get the life insurance that you need to ensure financial security for yourself and your family.
Insurers will look at two main factors when determining if they should give coverage:
- first, average blood sugar levels through a yearly A1C test;
- second, glucose tolerance results from another type of testing called GTT.
Neither way is better than the other but getting closer to normal can make all the difference in terms of approval or denial!
Above all, Insurance companies will want to know about any diabetes-related complications, such as neuropathy (nerve damage) or retinopathy (retina damage).
You won’t be automatically penalized for having these conditions if you can prove that you are managing them well.
4. Is Your Diabetes Well Managed
In order to lower your premiums for diabetes, you should eat a healthy diet and exercise regularly with oral medication. Also, see the doctor often so it proves that you are trying to take care of yourself!
5. Other Factors That Will Impact Your Premiums
In addition to those big four factors, insurers also assess your health history and family medical history.
They might ask about genetic conditions that could increase a person’s risk of disease or alcohol intake levels for this reason.
You Need To Choose The Right Life Insurance For Diabetics
The best policy option for you comes down to your budget and whether or not you want a life insurance medical exam.
These are the main options for life insurance if diabetic:
Term Life Insurance with type 1 and type 2 diabetes
If you want to save some money and still get a life insurance policy that will last for 10, 15, or 20 years then the cheapest and simplest option is term life insurance.
There’s no need to go through any health questionnaire but you’ll have to undergo medical exams so this would be a good fit if your diabetes is under control.
Whole Life For Diabetics
If you want to treat your policy as an asset, look into whole life insurance. It offers lifelong coverage and a portion of your premium is invested each month in order to give it cash value.
Once the policy has accumulated enough money, then you can start taking out loans against it.
Guaranteed Acceptance or Simplified Issue
People with diabetes who are younger than 50 might consider life insurance policies that do not require medical exams.
This simplified issue or guaranteed issues (no questionnaire required but still collect information about you) can be costly and capped at low amounts like $25,000-$50,00 because the insurer has less info on people’s health history.
Work Insurance (Group)
Life insurance with Type1 and Type 2 Diabetes is a great way to ensure that your financial dependents will be cared for should the worst happen.
One of those ways people with diabetes can secure coverage without taking out individual policies or going through medical exams is through their workplace.
While many companies provide group life insurance as part of employee benefits, this type often only covers up to two times your salary and is not enough if you have debt, assets, etc.
So supplemental plans may need to come into play for greater protection depending on the situation.
What Types Of Life Insurance Riders are Available
For a person with diabetes, these riders are worth looking into:
| Accelerated death benefit rider. Allows you to tap a portion of your policy’s death benefits early if you’re diagnosed with a terminal illness and can’t work anymore, |
| Critical illness riders let you withdraw part of the insurance while still alive as long as proof is given that there is an immediate need for it due to chronic or serious illnesses, |
| waiver of premium lets one pause premiums for those who become disabled temporarily because they cannot do their job. |
| Guaranteed Insurability Rider allows you to increase your coverage later on without taking another medical exam or answering health questions. |
| Term conversion rider, lets you convert all or part of your life insurance policy before age 65 and get permanent (level) coverage instead. |
Health Questions The Insurance Company Will Ask
When you choose a policy that requires either completing a medical exam or physical, expect to be asked various questions about your health. These might include:
| If you have type 1 diabetes, |
| How long ago did your doctor diagnose it? |
| What is the current state of your glucose levels? |
| What sort of medication do you take for them? |
| How many units per day are in each dosage? |
| Roughly how much insulin does that equate to every week or month? |
| What kind of diet do you currently eat (i.e., mostly carbohydrates?) |
| When was the last time an A1C level checked out? |
| Who’s your doctor? |
| And when was your last checkup? |
| They may also need some contact info for other healthcare team members like primary care doctors or endocrinologists—in fact, they probably will want it if any of those folks are involved in your current treatment plan (which hopefully they aren’t). |
| Medical conditions like coronary artery disease and kidney issues that you’ve had in the past. |
| Have they ever experienced a diabetic coma? |
| Do you take dialysis for other health problems? |
During the medical exam, your insurer might request records of recent test results such as blood pressure and cholesterol levels.
The process will be smoother if you have all documentation handy during this step in the application process.
How Much More Will I Pay For Life Insurance Being a Diabetic
People who have Type 2 Diabetes may pay more for their policy than those without it.
However, there is still hope! If managed well enough some companies can offer lower premiums – even if they’re in the “Standard” classification!”
Life Insurance Rates with Type 1 and Type 2 Diabetes (Sample Rates and Scenario)
This shows how important your treatment is to insurers. Here’s how much you can expect to pay per month for a $500,000, 20-year term life policy if you have diabetes and don’t smoke.
| Gender and age | Type 2 diabetes | Type 1 diabetes or Type 2 |
|---|---|---|
| Male | (Controlled) | (Not well controlled) |
| Age 30 | $35.48 | $44.37 |
| Age 40 | $56.56 | $70.02 |
| Age 50 | $132.65 | $176.30 |
| Female | (Controlled) | (Not well controlled) |
| Age 30 | $29.73 | $37.53 |
| Age 40 | $43.99 | $56.99 |
| Age 50 | $97.94 | $125.00 |
How Can I Lower My Life Insurance Rates With Diabetes
There are a few ways to cut the costs of life insurance for diabetes:
Comparing life insurance quotes from a handful of companies ensures that you get the most competitive rates.
Diabetes is difficult to manage, but if your doctor visits are regular and medication intake consistent then it will be easy for an insurer to see how seriously you’re taking this condition when they review their quote requests.
Call us, we are brokers that specialize in high-risk applicants.
Above all, we will help you narrow down your options and boost your chances of approval.
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FAQ’s
Q: Does the duration I’ve had diabetes impact my life insurance rates?
A: Yes, it can. Individuals who’ve had diabetes for a longer time might face higher premiums due to the increased risk of potential complications. However, how well you manage and control your diabetes over the years also plays a significant role.
Q: Does controlling my blood sugar impact my life insurance rates?
A: Absolutely. Good glycemic control and healthy lifestyle choices can result in more favorable policy terms and rates.
Q: Do the complications associated with diabetes, like neuropathy or retinopathy, affect my life insurance rates?
A: Yes, they might. Complications can signify that the diabetes is not well-managed, which could result in higher premiums. Each insurance provider will assess these factors differently during the underwriting process.
Conclusion
Having Type 1 or Type 2 diabetes shouldn’t deter you from seeking life insurance. While there might be additional considerations and potential hurdles, many policies cater to diabetics.
Remember, every insurance provider is different; shopping around and staying informed will ensure you find the best coverage for your needs. Protecting your loved ones is always worth the effort.
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