How does Diabetes Affect Life Insurance Premiums?

How Does Diabetes Affect Life Insurance Premiums?

Hello folks! Hope I find you well today. As you know, The Green Swan can be just as much about health as it is wealth. Well, how about a post with a little bit of both? Today I have a contributed post from Matt who is here to share how diabetes can affect life insurance premiums. Diabetes and pre-diabetes affects so many people in the US, but also worldwide. Fortunately I am not one of those and I certainly want to do what I can to avoid that critical illness in the future. The whole food plant based diet I’m on certainly helps stave off diabetes, but admittedly I need to do better with exercise.

If you have the illness today, have you had issues finding the right life insurance. If so, Matt has some answers for you!

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Diabetes is a chronic illness that effects over 30 million people in the United States alone. There may also be nearly 50 million people in this country with Pre-Diabetes. Diabetes is more common then you may realize.

If you have Diabetes, finding life insurance coverage may be a little tricky, and more difficult compared to a person who does not have this disease.  The good news is, there are options for you.  And most likely, more affordable then you think!

What Life Insurance Companies Look At

There are hundreds of life insurance companies available to consumers in the United States.  But depending on your Diabetes diagnosis, and control of Diabetes, the number of companies that may offer coverage may vary.

Each life insurance company will have their own underwriting guidelines.  Depending on your overall health profile, you can possibly be approved, or declined all together.  Here’s a list of information most companies will use, to determine your rates:

  • Age first diagnosed with Diabetes
  • Types of Diabetes medications used to control your Diabetes
  • Are there any Diabetes complications?
  • What type of control do you have over your Diabetes?
  • Are you compliant with your Doctor’s orders, and following their instructions?
  • Any use of Tobacco?
  • Any other significant health issues? (history of heart attacks, cancer, stroke)
  • Your height and weight

The first step in getting life insurance for diabetics is to have an agent review your overall health profile.  From there, they can help you determine what companies, and what rates you may qualify for.  This will give you a realistic expectation of what your premiums may be, before simply applying and hoping for the best.

Do You Have to Take a Medical Exam to Qualify for Coverage?

Over time, life insurance companies have evolved.  If you have any type of Diabetes, you would still qualify for Non-Medical exam policies.  Some people aren’t too thrilled with having to undergo a blood and urine test, while applying for life insurance.  If you are one of these people, you’d have some options.

But before you get too excited, please realize that often times a non-medical exam policy may be more expensive, compared to a policy that does require one.  However, you may always start with a more expensive plan, and then switch to a lower priced policy in the future.

One of the advantages to a non-medical exam policy, is that you may get an approval in a matter of days, compared to weeks when applying with a fully underwritten policy.  If you need a policy in a short amount of time, you would want to seek a company who can offer a non-medical exam policy.

People with Diabetes can qualify for non-medical exam term policies, whole life insurance policies, and Universal Life policies.  Or if needing a small policy to cover burial or funeral costs, you can easily obtain burial insurance policies.

This is where we can help you.  We have relationships with many of the best life insurance carriers and know the idiosyncrasies of each.  Once we know your unique situation, we will shop your case at the appropriate carriers to help you get the best possible coverage.

Where Can I Find Coverage if I Have Diabetes?

Depending on your overall health profile, you should have some different options as to where to find coverage.  There are life insurance agencies who specialize in working with the Diabetes community.  Agencies like Diabetes Life Solutions were founded due to having family members diagnosed with Diabetes and experiencing trouble trying to get life insurance.

Another option is to search for coverage thru your employer.  Most employers offer group life insurance to their employees.  However, some group plans may not offer coverage depending on your Diabetes history.  It’s important to work with your Human Resource professional and discuss your eligibility for these types of plans.

One thing to avoid, is to work with what’s called a “captive” insurance agent.  Captive agents usually only work with ONE company, who is usually their employer.  This means that they will only recommend ONE company to you.  And most likely their rates are not competitive, to other insurance carriers.   You always want to work with an “independent agent” who can run your case past multiple companies.

How Can I Save Money on Life Insurance if I Have Diabetes???

Unfortunately, many people with Diabetes will tend to have higher premiums compared to people without Diabetes.  But there are some ways to lower your premium payments.

  • First, if you use tobacco products, stop.  Using tobacco in combination with Diabetes, will lead to about a 30% increase in premiums.  If you like to save money, this will be an incentive for you to refrain from tobacco products.
  • Second, start seeing an Endocrinologist.  Some life insurance carriers will offer better rates, if you are seeing this type of Diabetes Specialist.  Also, if seeing an Endocrinologist, your control of your Diabetes will be better, compared to people who don’t work with one.
  • Third, EXERCISE!!!  Not only will this possibly help you lose weight, it may lower your Diabetes levels.  Also, certain life insurance companies offer discounts, if you live a healthy life style.  Essentially, they are giving you free money, to have a regular workout regimen.

Having Diabetes no longer prohibits you from obtaining affordable life insurance.  Rates for the Diabetes community have never been lower.  If you’ve been putting off finding coverage for your family, now is the time to begin your search.  We think you’ll be pleasantly surprised by the rates, and the options you would have.

Matt

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