Life Insurance for Diabetics

Diabetes won't automatically disqualify you for life insurance. You may even pay less than you might think. Read on to learn more about affordable life insurance for those with diabetes.

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Nearly 10% of the U.S. population is living with diabetes or pre-diabetes, according to the Centers for Disease Control and Prevention (CDC).

If you have diabetes, there are several affordable life insurance options—especially if you have the disease under control and lead a healthy lifestyle.

Can I Get Life Insurance as a Diabetic?

Compared to someone who does not have diabetes, you'll likely pay more for life insurance. Why?

Premiums depend on the risk you pose to the life insurance company. If you die before the term ends, you aren't paying off the full price of the insurance policy.

Since diabetes comes with a variety of health complications, you automatically have an increased risk. However, your premiums can vary significantly depending on:

• How well you control you diabetes
  
• How reliably you take medications
  
• Other diabetes-related risk factors you present

Keep reading to learn what else you need to know about life insurance for diabetics.

What You Need to Know Before Applying

Here are some things to keep in mind when shopping for life insurance for a diabetic.

Getting Approved May Be Harder
You have a lower chance of being approved (or paying more for coverage) if you:

• Do not take your medications or lead a healthy lifestyle

• Have additional contributing health risks like coronary heart disease, obesity, or uncontrolled high blood pressure.

• Smoke

• Were diagnosed at a young age

If any of these apply, you may want to consider a guaranteed issue life insurance policy. You will pay a significant monthly premium with this policy, however.

The Underwriting Process Is the Same
Underwriters determine how likely you are to die before your policy term is complete. The older and/or unhealthier you are, the higher your risk. This means you'll pay higher premiums.

But diabetics are subject to the same process as anyone else applying for a life insurance policy. Underwriters will want to know several factors that will be used to determine the cost and eligibility of your insurance.

But Expect Extra Questions
Underwriters will review a few additional factors like:

• Age you were diagnosed
  Generally, the longer you've had diabetes, the higher your risk. Interestingly, if you were diagnosed over the age of 50, you may qualify for even better premiums.

• Type of diabetes
  You are more likely to qualify for a lower premium if you have type 2 diabetes. There are a few reasons for this:
  
  • Type 2 is more common, accounting for more than 90% of diabetes cases.

  • It's usually seen as more manageable.

  • Type 1 is more commonly diagnosed in children, which as mentioned previously, can affect your risk and premium rates.

• Whether the disease is under control
  Generally, life insurance companies like to see that your diabetes has been stable for 6–12 months. Showing that you are following a doctor-prescribed treatment plan will also help. That includes:
  
  • Going to regular appointments
    
  • Leading a healthy lifestyle
    
  • Taking medications as prescribed

• Severity of your diabetes
  The underwriter will look at your A1c levels to help judge how severe your diabetes is.

• Related conditions.
  Underwriters will look for other diabetes-related conditions that could affect your overall health and risk factors. This can include diabetic retinopathy, diabetic neuropathy, and proteinuria.

What Are My Policy Options if I'm Diabetic?

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Always consider your needs now and in the future when shopping for life insurance. Ask yourself:

• Do you want coverage only while you raise children?

• Do you have significant loan debt and a co-signer you want to provide for if you die?

• Do you want to leave an inheritance to beneficiaries when you're gone?

Read on for a summary of the three most popular policy types for diabetics.

Term

The most popular type of coverage, term life insurance costs less because it's temporary. Most terms are for 10, 20, or 30 years, though some companies offer 5-, 15-, and 25-year terms.

The premiums are guaranteed for the life of the term, and the death benefit is paid to the beneficiary (non-taxable) upon your death.

Consider term life insurance if you only need insurance coverage to replace your income over a certain period of time, like when you are raising children or have an outstanding mortgage or other debts.

If your term ends and you are still alive, you can either renew the policy on an annual basis, or if you no longer need coverage, you let the policy expire and continue without insurance coverage.

Permanent/Whole

Permanent policies often are more expensive than term life. The main permanent life insurance option is whole life insurance, but universal life insurance is an option. Both options are available for diabetics.

Consider a whole life policy if you want to provide an inheritance to your heirs or money for estate taxes, or you have lifelong dependents such as a child with special needs.

The cash value growth, which is unique to permanent life insurance, involves taking a part of your premium and putting it into a "side" account that accumulates interest and grows in value.

You can normally access the cash value through time via withdrawals or loans. But this often comes with fees or other contingencies, so you should read your policy carefully before doing so.

Guaranteed Issue

This type of policy requires no medical exam and you are guaranteed approval. However, it's also the most expensive option.

Guaranteed Issue was designed for people with serious health conditions, or those who are elderly.

Premiums averaging $50–$600+ per month with low death benefits (usually between $10,000–$20,000).

You can keep the policy as long as you pay premiums. But depending on how long you have the policy, the amount you pay could be more than the death benefit.

The Best Life Insurance Companies for People with Diabetes

Here's a list of some of the top life insurance companies for people with diabetes.

Key Features of Top Life Insurance Companies

Mutual of Omaha

• A+ financial rating from A.M. Best
  
• No-exam options
  
• Particularly popular for final expense insurance for diabetics
  
• Generally affordable

American National

• A financial rating from A.M. Best
  
• No-exam options
  
• Insures more diabetics than almost any one in U.S.
  
• Variety of policy options

Prudential

• A+ financial rating from A.M. Best
  
• Assesses diabetic conditions on case-by-case basis.
  
• Flexible health underwriting.

Banner Life

• A+ financial rating from A.M. Best
  
• Underwriting specifically for diabetics
  
• Best "high-risk" life insurance coverage
  
• Typically have higher premiums

United Home Life

• A- financial rating from A.M. Best
  
• No-medical exams
  
• Guaranteed coverage
  
• Term and whole options, even for insulin-dependents

Protective

• A+ financial rating from A.M. Best
  
• Relatively fast underwriting

North American Co.

• A+ financial rating from A.M. Best
  
• No-exam options
  
• Living benefits allow policyholder to access death benefit when needed.

How Long Can You Live with Type 2 Diabetes?

Type 2 diabetes can shorten your lifespan by about 10 years, according to a 2010 study from the U.K. But doctors stress that many factors impact how the disease affects you. These include:

• When you are diagnosed
  
• Any possible related (or unrelated) health issues
  
• Your general health

The best way to increase your life expectancy is through a well balanced diet, regular exercise and careful monitoring of your blood sugar.

Bottom Line

If kept under control, diabetes should not prevent you from securing life insurance coverage. However, you may face higher than average premiums.

The insurance company will have access to your medical records, allow you to answer questions during a health interview or medical exam, and have a thorough understanding of all factors that go into your condition.

Do your research to learn which policy and company may be best for you. As long as your diabetes is under control, monitored, and treated properly, purchasing a life insurance policy is possible, and even easy.