This article will discuss how important it is to get a life insurance policy, especially for a diabetic person. A healthy person could quickly get one for himself. So, you may be wondering, how about people with pre-existing conditions like diabetes? How do they get life insurance?
Are Life Insurance Policies Available for Diabetics?
The short and best answer is – of course! People with diabetes can still get life insurance policies. However, they may pay higher premiums and expenses in doing so.
In the National Diabetes Statistic Report made by the Centers for Disease Control and Prevention (CDC) in 2020, a total of 34.2 million Americans are recorded as diabetic, and around 88 million are pre-diabetic.
Those numbers are not to be dealt with lightly. Without proper assessments by your physician, you may never know if you’re already part of the statistics.
That is why you must prepare and get life insurance even before you are diagnosed with diabetes. But if you already have diabetes, don’t fret because you are still very much eligible to procure life insurance for yourself.
Can the Type of Diabetes Affect Your Life Insurance?
Your insurance coverage options may vary and be limited depending on the type of diabetes you have. It will have a significant impact on how insurance providers will evaluate your application since people with diabetes are considered high-risk.
Type 1 Diabetes
Purchasing life insurance may be more challenging for people with Type 1 diabetes than those with Type 2, as they are considered higher risk. Many providers see them as less manageable, mainly because they require more insulin.
Age of diagnosis is also a critical factor that life insurance companies check. If you get diagnosed later in life, you have fewer years of being diabetic, meaning you have lower risks.
Type 2 Diabetes
They are considered lower risk by many insurance companies. If you can manage it well with lifestyle changes or medication and have no other complications, your chances of getting life insurance are higher.
But it still may affect your life insurance rating and may have to pay higher costs.
Gestational Diabetes
This is usually applicable to pregnant women. Gestational diabetes usually occurs after giving birth due to hormonal changes that can lead some women to develop Type 2 diabetes.
Most life insurance policies still cover this. However, providers will consider you a high risk and you may pay more than a woman without gestational diabetes.
In some cases, gestational diabetes goes away. So, you may want to wait it out before getting life insurance. But always consult your doctor first to make sure you are clear.
How to Get Life Insurance if You Are Diabetic?
Procuring life insurance if you have diabetes is almost the same as getting one if you are a person without any health issues or comorbidities.
It may just be challenging for you to get approved if you have other health issues. But don’t be discouraged. A lot of insurance companies accept applications if proper qualifications and requirements are met.
Check out the following factors that insurance companies evaluate when a person with diabetes applies for life insurance:
1. Age
Cheaper rates are often offered to younger applicants. However, the longer you’ve had diabetes, the higher your rate is likely to become.
2. Type of Diabetes
As already discussed above, depending on the type of diabetes you have, insurers may or may not accept your application.
Type 1 diabetes is considered a higher risk than Type 2 diabetes. Thus, the latter is more likely to get a better policy with a lower premium.
3. Severity of Diabetes
Medical tests may be required of you by some insurers. If the results say that your diabetes is manageable, it is more likely for you to get insurance.
4. Diabetes Treatment
Suppose you can prove that you are taking steps to better your health and treat your diabetes. In that case, your chances of getting that policy with a lower premium are higher.
5. Other Factors
Aside from the factors mentioned above, insurers also consider your health history, family’s medical history, and alcohol consumption history.
These other factors may indicate how challenging it will be for you to bag that policy. The healthier you are, the easier you get the insurance policy at a lower rate.
How Much Does It Cost?
As previously mentioned in this article, the cost of a life insurance policy for a person with diabetes would depend on how much of a risk they are.
But generally, people with diabetes pay more for a policy than those who don’t have diabetes. It could cost them at least twice the rates.
Are There Affordable Diabetic Life Insurance?
Of course, there are. Your best bet is to look for insurance providers specializing in high-risk health or particular risk factors like diabetes.
Also, to make it more affordable for you, try to make yourself healthier. The healthier you are, the cheaper your premium is going to be.
Most insurance policies evaluate applicants based on their current state. If they see that you have your diabetes under control and don’t have any other health risk factors, they will most often not accept your application.
The following are some factors they look for when assessing you:
- Low A1C levels
- Low glucose levels
- Healthy lifestyle
Developing Diabetes After Getting Life Insurance
One possible scenario that may arise is that you may be diagnosed with diabetes after getting yourself a life insurance policy. Don’t fret; you will still have your life insurance.
An insurer cannot cancel your policy or alter your rates if you are diagnosed with diabetes later in life. Your premium would stay the same, especially if you purchased a permanent life insurance policy.
But three instances could be an issue to your policy if you develop diabetes after your purchase:
Having term life policy and wanting to continue coverage after the term ends
If you have a conversion option, you may choose to convert it to permanent life insurance without having a new medical evaluation.
On the other hand, if you are healthy and just need coverage for a few more years, you can always apply for a new term life insurance policy.
Having group insurance via your employer
Once you leave your employer or company, your insurance will also cease. If possible, port or convert your policy or else, just apply for other life insurance.
Increasing your policy coverage
In term life insurance, you may be required for another underwriting, meaning a diabetes diagnosis could increase the cost of your coverage.
With universal life insurance, you can purchase add-ons to increase your coverage without further health evaluation.
4 Tips to Lower Insurance Rates
You don’t have to shell out so much money to pay for your life insurance. If you plan it well, you may have lower life insurance rates.
Below are some of the tips to lessen your life insurance rates:
- Shop Around
Look for the best insurance providers. Some are more lenient than others. Compare life insurance rates from different companies to make sure you are maximizing your money’s worth.
- Stay Healthy
As mentioned earlier, a healthier body means cheaper insurance policy rates.
Get your regular checkups. Take your medications. Eat a healthy and appropriate diet. Maintain an active lifestyle. Stay away from things that could worsen your condition, like alcohol and sweets.
- Use a Broker
A broker can narrow down your options and boost your chances of approval. Some even specialize in high-risk applicants.
- Insurers With Wellness Programs
This may not necessarily cheapen your premiums. But you can look for insurers that offer more benefits than the others.
Why pay a dollar for an apple in one store when you can pay the same price for two at another?
To Sum Up!
Life insurance is available for everyone, including people with diabetes. It is best to invest in your health as soon as possible.
It is easier to qualify for life insurance when you are younger and a lot healthier. The older and less healthy you become, the harder it will be for you to get accepted.
Do not wait until such a tragic time happens that you won’t have a safety net to fall on. Whether you have diabetes or not, getting life insurance will always be a good idea.