How to Get Life Insurance as a Diabetic
People with Type 1 or Type 2 diabetes can obtain life insurance coverage; however, the policies you'll be eligible for and the ease of the process will vary depending on your type of diabetes, the age you were diagnosed, and how it's managed.
Someone diagnosed with Type 2 diabetes later in life who is able to control it solely through diet and exercise will most likely qualify for the best life insurance rates. If you are insulin-dependent or have had diabetes complications, you can still obtain life insurance, but your coverage options may be more limited.
How the type of diabetes you have impacts life insurance
If you have diabetes, you can buy life insurance. However, your coverage options may be limited, and a policy will almost certainly cost more because insurers will view you as a higher risk. The type of diabetes you have, along with other health factors, will have a significant impact on how life insurance companies evaluate your application, because each type of diabetes affects your health differently.
Life insurance for Type 1 diabetics
People with Type 1 diabetes are considered to be at a higher risk than those with Type 2 diabetes and may have a more difficult time obtaining life insurance. Life insurers consider Type 1 diabetes to be more difficult to manage, particularly because it frequently necessitates the use of insulin to control.
When evaluating risk, life insurance companies consider the age of diagnosis, because a diagnosis later in life means fewer years when it will impact your body and health. Type 1 diabetes, on the other hand, is frequently diagnosed in children or teenagers, which means you'd be considered a higher risk when applying for life insurance.
Life insurance for Type 2 diabetics
Life insurance companies consider type 2 diabetes to be a lower risk, especially if you can manage it with lifestyle changes or oral medication and have had no complications. Because it is frequently diagnosed in adulthood, insurers are more likely to view you favorably. As long as you're otherwise healthy and haven't had any complications, having Type 2 diabetes should not prevent you from obtaining a policy, though it will affect your life insurance rating and raise your premium.
Life insurance with gestational diabetes
Gestational diabetes can develop in pregnant women as a result of hormonal changes in the body, and it is often a temporary condition that resolves quickly after giving birth. However, this is not always the case, and some women will develop Type 2 diabetes as a result. As a result, life insurance companies will consider you a higher risk, and you will pay more than a woman who does not have gestational diabetes.
If you are already pregnant and have gestational diabetes, you should wait several months after giving birth before applying for life insurance. If the condition clears up after pregnancy, you'll have an easier time qualifying for life insurance and will likely receive lower quotes.
Why is it hard for diabetics to get life insurance?
Life insurance is more difficult to obtain and more expensive for people who have pre-existing medical conditions. Insurers assess applicants based on their expected mortality, which is influenced by your current medical conditions and the likelihood of developing new critical conditions. Because diabetes is frequently associated with other health issues, such as obesity, and is a risk factor for other medical conditions, it can be difficult to find a good life insurance policy as a diabetic.
Given the severity of these side effects, even diabetic-friendly life insurance companies will classify you as a high-risk applicant if you've had any complications or your application demonstrates that your condition isn't well-controlled.
What health factors impact the cost of life Insurance for diabetics?
When you apply for life insurance with diabetes, the insurer will determine whether you qualify for coverage and the rates you qualify for based on your current health, medical history, family history, and lifestyle. Life insurance companies will want to know if your diabetes is under control, how it has affected your body, and how likely it is to negatively impact your health in the future.
In addition to the standard life insurance application, you will need to complete a diabetes questionnaire. They may ask for additional records from any doctors you've seen in the last few years. In addition, unless you purchase a no-medical-exam policy, the insurer will require you to take either a paramedical exam or a full physical.
The following are some common questions asked of diabetics, as well as the details insurers will look for when evaluating your application.
Question | Details |
Type of diabetes | Whether you have Type 1, Type 2 or gestational diabetes. |
Current age and date first diagnosed | The longer you've had diabetes, the longer it's impacted your body, increasing your likelihood of side effects. A later-in-life diagnosis is better, with over age 50 being ideal. |
Doctor and care records | Names, addresses and phone numbers of all doctors you've seen in the last two years. The insurer may want documentation of all follow-up appointments and referrals. |
A1C levels | This indicates the severity of your diabetes and how well it's controlled. Essentially, the lower your A1C, the better. If it's below 7.0, you'll generally be viewed favorably. Levels above 7.5 show less control and higher risk. |
How your diabetes is controlled | Insurers want to know if your diabetes is controlled through diet and exercise, oral medication, insulin or a combination. They may also want details on your current diet, exercise frequency, types of medication and doses, or number of insulin units per day. Control through diet and exercise alone is ideal, but consistent control through any method is preferable to a lack of control. |
Medical history | Your current height and weight, details of your family's medical history, whether you take any additional medications, details of any other conditions you've had and whether you smoke. |
Blood sugar | Your most recent reading and whether you monitor it yourself. A blood glucose level below 135 is typically considered good, but you can often get coverage if your level is higher but controlled. |
Blood pressure | High blood pressure issues will raise your life insurance rates. |
Cholesterol | Your readings for LDL (bad) cholesterol, which can cause coronary artery disease, and HDL (good) cholesterol. |
Microalbumin | A microalbumin test is used to detect early signs of kidney damage, a common side effect of diabetes. |
Other conditions or complications | If you've had any diabetes-related complications or other serious medical conditions, you'll be considered a significantly higher risk. Some diabetes-related conditions insurers will want to know about: chest pain, coronary artery disease, protein in the urine (proteinuria), neuropathy, retinopathy, abnormal ECG, obesity, elevated lipids, kidney disease, blackout spells and hypertension. |
Choosing the best life insurance policy with diabetes
When choosing the best life insurance policy for yourself, diabetics need to determine:
- The type of policy (term, whole, guaranteed universal or universal)
- Level of underwriting (fully underwritten, no medical exam or guaranteed acceptance)
- The amount of coverage needed
We recommend that you first review your finances and goals to determine how much coverage you may require and how long it will need to be in effect.
These factors will have a direct impact on which policies to consider and how much underwriting is required to qualify. If you later decide that you need more coverage than you originally purchased, you will almost certainly need to go through additional underwriting. Because you may develop diabetes-related side effects or complications over time, you risk either not qualifying for additional coverage or paying significantly higher rates.
Type of policy
Term life insurance policies are the most affordable in terms of cost per dollar of coverage because they only last for a set period of time, such as 10 or 20 years, and have no cash value. For example, if you're concerned about your children's ability to pay for college if you die as a result of diabetic complications, you might consider purchasing a term policy that extends into their adulthood. Furthermore, most term policies allow you to convert to a permanent policy without additional underwriting, which means that future diabetic complications will not be considered if your circumstances change.
A permanent life insurance policy, on the other hand, may be preferable if you know you want to leave an inheritance or ensure that your spouse receives support regardless of when you die. Just keep in mind that permanent life insurance policies with a cash value component, such as universal and whole life insurance, are the most expensive options.
Because you are already likely to pay higher rates as a result of your diabetes, you may want to compare the cost of these policies to the cost of a guaranteed universal life insurance policy, which is generally more affordable. Guaranteed universal policies are less expensive because they contain little to no cash value while still providing lifelong coverage.
No medical exam vs. fully underwritten life insurance
Diabetics can buy term or whole life insurance policies without having to take a medical exam, but these policies are more expensive and have a limited amount of coverage.
No-medical-exam term policies typically provide no more than $500,000 in coverage, whereas no-exam whole life policies typically provide no more than $50,000 in coverage. If you choose not to have a medical exam, the insurer will still require you to complete a diabetic questionnaire and provide records from your doctors. So, even if you don't have a paramedical exam, your insurer will almost certainly find out if your diabetes isn't well controlled or if you've been diagnosed with complications.
A no-medical-exam life insurance policy, on the other hand, may be your best option if you suspect you have undiagnosed diabetes-related side effects or complications. Assume you've had numbness in your hands and feet but haven't been diagnosed with neuropathy. If you applied for a fully underwritten term life insurance policy and the complication was discovered during the paramedical exam, you could be denied.
Furthermore, the findings of the insurer's investigation would be made available to other life insurance companies, including those that provide no-exam policies. If you initially applied for a no-medical-exam policy, the insurer would still consider you a higher risk because of your diabetes, but they would only evaluate your risk based on your questionnaire and medical records.
Whether you're applying for a no-exam policy or a fully underwritten policy, it's critical that you answer all questions truthfully. Otherwise, if you die, your coverage may be cancelled or your family's life insurance claim may be denied.
What if you're rejected for life insurance coverage?
If you are turned down for fully underwritten and no-medical-exam life insurance policies because of your diabetes, you can still get a guaranteed-issue policy. Because guaranteed-issue whole life insurance, also known as final expense insurance, is the most expensive form of coverage, we only recommend it as a last resort if you need coverage.
Policies typically have a maximum death benefit of around $25,000 and a two- to three-year waiting period during which your beneficiaries would not receive the full death benefit if you died as a result of a nonaccident. For example, if you died one year after purchasing your policy due to diabetic complications, your family would only receive the amount of premiums paid plus a small amount of interest.
Best life Insurance companies for diabetics
The cheapest life insurance company for a diabetic will differ depending on the type of policy you want, the amount of coverage, the type of diabetes, the medication you take, and the date you were diagnosed. We recommend comparing and obtaining quotes from several life insurance companies to determine which one will offer the best rates for your desired coverage.
As a starting point, diabetics may be able to qualify for at least $250,000 of term coverage with the following life insurance companies, depending on their age of diagnosis and how well their condition is controlled.
Insurer | Types of diabetes | Minimum age of diagnosis | Medical exam? |
AIG | Type 2 | 30 | Exam |
American National | Type 2 | 40 | No exam option |
Americo | Type 2 | 30 | No exam option |
Banner Life | Type 2 | Varies | Exam |
John Hancock | Type 1, Type 2 | Varies | No exam option |
Mutual of Omaha | Type 1, Type 2 | 50 | No exam option |
North American Co. | Type 2 | 40 | No exam option |
Phoenix | Type 1, Type 2 | Varies | No exam option |
Protective | Type 2 | Varies | Exam |
Prudential | Type 1, Type 2 | Varies | Exam |
Royal Neighbors of America | Type 2 | 30 | No exam option |
Sagicor | Type 2 | 50 | No exam option |
United of Omaha | Type 2 | Varies | No exam option |
John Hancock Aspire Vitality Program
The Aspire Vitality Program from John Hancock is a new life insurance product designed specifically for diabetics. The program combines John Hancock's existing Vitality option with the company's traditional life insurance options to offer discounted rates and diabetes wellness tools.
The Vitality program offers perks like free health magazines, discounts on wearable fitness devices, and premium savings for engaging in healthy activities. The Vitality rider is included in the cost of your policy (typically $2 per month) and requires you to fill out a brief health questionnaire. When you complete healthy living goals, such as exercising, eating well, or participating in preventative care, you earn points that can be used to purchase better rewards.
Aspire, a diabetes-specific program, has been added to the Vitality program. Instead of the standard 15% maximum premium discount, the discount can go up to 25% depending on your Vitality Status, which is obtained by participating in the above-mentioned healthy activities.
If you are a Type 2 diabetic, you will be able to join the Onduo diabetes management program in addition to having access to Vitality. This system enables you to accurately monitor your diabetes, report the results to John Hancock, and potentially receive larger premium discounts.
What if you were diagnosed with diabetes after buying life insurance?
If you buy life insurance and the policy is issued, the insurer cannot cancel the policy or change your rates if you are later diagnosed with diabetes. If you have a permanent life insurance policy, your premiums and coverage will remain unchanged even if you develop diabetes. There are only three scenarios in which becoming diabetic after purchasing life insurance would be problematic, but you have options in each case:
Situation | Options |
You have a term life policy and want to continue coverage after the term ends. | If your term policy included a conversion option, you can choose to convert it into a permanent life insurance policy without undergoing a new medical evaluation. Permanent policies cost more, but you won't have to requalify and coverage will extend for as long as you choose. Alternatively, if you only need coverage for a few more years or are healthy and controlling your diabetes well, you can apply for a new term life insurance policy. |
You have group life insurance through your employer. | If you're no longer employed by a company, your group life insurance will cease. Some policies have a conversion or portability option that let you convert your existing coverage to an individual life insurance policy without a medical review. However, these converted policies are often quite expensive and may cost more than you'd pay elsewhere, even with diabetes. We recommend porting or converting your policy if possible, so you don't forgo coverage, but apply for other life insurance too in case you qualify for better rates. |
You wish to increase your policy's coverage. | In order to increase your death benefit, you'll typically need to undergo additional underwriting, which means a diabetes diagnosis could increase your cost of coverage. With whole or universal life insurance, you might be able to purchase paid-up additions which increase your policy's coverage without requiring a health evaluation, but this option isn't always available. With term life insurance, you likely won't be able to increase your coverage without additional underwriting. You may want to consider a second policy with no medical exam, if the amount of additional coverage you need isn't too large. |