Over 2.1 million Canadians, which is 7.0% of the population, had diabetes as of 2016. That doesn't include those with prediabetes.
It's one of the top leading causes of death in the world, including countries like Canada and the United States. It comes with a set of complications that are also deadly. Even one complication can reduce the lifespan of a patient.
The scary thing about this illness is that it hits even young people. For this reason, it's a good idea to take out insurance as soon as possible.
But is there even a life insurance for diabetics?
Yes, there are policies that diabetics can qualify for. They may be different from the standard ones, so it's important you talk to the right person about this.
Can You Get Life Insurance for Diabetics?
Contrary to a common belief, having a chronic illness doesn't automatically exempt anyone from getting a life insurance.
It is a common misconception that insurance companies don't provide insurance for people with severe illnesses. That's not the case but the specific terms of their insurance plans are different from people without long-term health complications.
With the advancement of modern medicine, there are now lots of ways to manage and prolong a life. Insurance companies know this as well. Many now provide insurance to people with chronic illnesses.
Diabetes is one of them among many others, such as cancer and HIV.
Will You Qualify for a Life Insurance?
Note that getting a life insurance for diabetics is not going to be easy. Some companies don't offer high-risk insurance. Those who do may accept or decline depending on the type of your diabetes.
Take Type 1 diabetes, for instance. A company may disqualify you at once when you have this type. Meanwhile, another company may approve if the patient can control their illness.
Those who have Type 2 will find it easier to get insurance. This is great news because around 95% of diabetics have this type.
Furthermore, diabetes often comes in a package of many complications. This might make it harder to apply for an insurance, especially if you have one or more of the following:
- History of Heart Disease
- Kidney Disease
- Uncontrolled High Blood Pressure
- Neuropathy
- Obesity
- Smoking
On the other hand, you will likely qualify and get the standard rates if you maintain a healthy lifestyle.
What Insurance Can You Get?
Although diabetics have limited options, they still have more than a couple of life insurance choices.
Term Life Insurance
This insurance pays out death benefits only. You can either choose the term: 10, 20, or 30 years. Or you can choose a policy that covers you until a specific age.
At the end of the term, the owner may renew the plan or cancel the coverage. The holder may also upgrade to a permanent insurance afterward, no questions asked.
This type of life insurance for diabetics is preferable if the term expires when the owner doesn't need to provide for the family any longer.
Permanent Life Insurance
This type of insurance doesn't end - not until you stop paying for it. Like a term life insurance, the premium stays the same and there are death benefits. A plus is that it has a cash value that accumulates on a tax-deferred basis.
The policyholder is able to withdraw cash. But if it remains unpaid upon death, the insurer will deduct the amount withdrawn from the payout.
The best thing about this is that the insurance stays the same. It doesn't matter if the owner develops a new complication of diabetes.
No Exam Life Insurance
This is the popular choice among Type 2 diabetics, who won't need to undergo a medical exam. They will, however, have to answer a set of questions about their history, medications, and such.
It's an easy way to get an insurance, but it's more expensive than going the typical route. It also has a contestability period. During which, they can launch an investigation to see if you answered honestly.
If they were to find out that you were lying, they can cancel the policy. They can also refuse to pay upon death if you die within the contestability period.
Guaranteed Issue Policy
Check if you are eligible for a guaranteed issue life insurance. This grants you a policy without a medical examination or questions.
Life insurance companies typically offer this to older people at 50 years old and above. They also have other qualifications that you may be eligible to.
If you are eligible, the company must grant you a Medigap policy that covers all your pre-existing conditions. This sounds great, but this doesn't have that much death benefits. It also has higher premiums to pay.
The best type of insurance and the best company differs from person to person. It's best to talk to a knowledgeable agent if you're still unsure what's right for you.
Cost of Life Insurance for Diabetics
It's true that life insurance for diabetics costs more than for an average person. But you can still get an affordable insurance depending on the company. If you have Type 2 diabetes, the rates are likely less expensive as well.
People who contracted the illness when they were older are also likely to get lower insurance rates than those who were younger when they had diabetes.
However, those are not the only factors when determining the premium. The other usual factors that an insurance company will consider are:
- Age
- Gender
- Medical History
- Date of Diagnosis
- Blood Sugar Levels
- Blood Pressure
- Control Factor or A1C
- Current Medications
- Current Treatment Plan
With that said, having Type 2 diabetes doesn't instantly mean that your premium is lower than that for Type 1. It all depends on the factors above and the risks.
Learn What Type of Insurance is Best for You
Ready to get an insurance? Or are you still confused about some things? Contact us now and let us help you get the best life insurance for diabetics.
We also offer other types of insurance. Check out our blog to see more tips and guides for getting the right type for you.
