November is Diabetes awareness month. People with diabetes often wonder if they’re eligible for life insurance and if you’re wondering that too, here’s some good news. Yes, if your diabetes is in control, you are eligible for life insurance policy.
Even those whose diabetes is in poor control may get a guaranteed issue policy without medical examination. However such policies may offer lower death benefits and may come at higher premiums. Read on to learn some crucial facts about diabetes and life insurance policy.
Life Insurance without Medical Examination: Pros & Cons
Health is an important aspect that is considered while issuing most life insurance policies. However, there are some that don’t take health into account and these are called guaranteed issue policies. If you’re diabetic and are finding it hard to get life insurance, these might be an excellent option.
Guaranteed issue policies typically have a standard waiting period from the time of purchase. If the policy-holder dies within this time, all premiums will be re-issued while the death benefits are not paid out. Robert Schmidt of Burial Insurance Pro mentions “Many people assume that they’ll only qualify for guaranteed issued type of policies, if they live with Diabetes. Truth is, many people with type 1 or type 2 diabetes will qualify for immediate death benefit plans.”
Pros of guaranteed issue life insurance policy:
- Your eligibility and premium rates are not affected by your medical history
- Your age factors in for premium determination (your premiums will be lower if you get the insurance sooner than later)
Cons of guaranteed issue life insurance policy:
- Higher premium rates when compared to the regular life insurance policies
- Lower death benefits when compared to regular life insurance policies
- No death benefits if you die during the waiting period
Type-1 Diabetes and Life Insurance Policy Rates & Premiums:
Type-1 Diabetes is the rarer and more severe type of Diabetes that requires consistent insulin treatment. Plus, it is usually diagnosed early on, at a much younger age.
When it comes to life insurance coverage, the approval is harder if the period and severity of your diabetes is more. If you do get approval, the rates will typically be higher than for those who have been diabetic for a lesser time.
When compared to those with Type-2 Diabetes, those with Type-1 Diabetes will typically find it harder to get a reasonable coverage and that too if they get approval at all.
Type-2 Diabetes and Life Insurance Policy Rates and Premiums:
Unlike Type-1 Diabetes, Type-2 Diabetes is a lot more common and less severe. It is also usually diagnosed in older people.
Because Type-2 Diabetes is milder and easier to control, premiums for those suffering with it will typically be lower than those with Type-1 Diabetes. However, premiums will still be higher than for people of the same age who do not have diabetes.
How your life insurance rates can be improved with Diabetes Management
The basic logic of life insurance rates is this – the more risk you pose to the life insurance company, higher your insurance rates. If your condition increases your odds of dying sooner than the expected lifespan of a regular person, you will have to pay higher rates, provided you get approved at all.
However, with medication and improved lifestyle choices like exercise and diet, you can bring your diabetes under control. This could help you in not only increasing your approval rates but also decreasing your premium rates.
Melissa Thompson with Diabetes365.org states “ Every life insurance company will have their own set of underwriting guidelines. Because of this, it’s important to work with a life insurance agent who specializes in working with the Diabetes community. Life insurance for people with Diabetes tends to be more expensive, but an experienced agent would be able to save you thousands of dollars over the life of a policy.”
Finding the perfect life insurance for a diabetic
If you’re diabetic and you’re considering getting life insurance, it’s better to get it sooner than later. Premium rates will be determined on your health condition today and they will not be increased should your health worsen in the future. While getting insurance exams, keep your diabetes in check with the help of your doctor.
If you have diabetes, a great option for life insurance is getting a group life insurance. Check with your employer to see if they offer group life insurance as a part of your employee benefits. While these group policies offer lower benefits than standard life insurance policies, they don’t factor in your medical condition into the eligibility criteria.
Also consider reaching out to a financial advisor who can suggest and educate you about the best options available to match your medical condition as well as your financial plan.
Article Submitted By Community Writer
