Planning for the future can entail a variety of different tasks – and when it comes to the financial aspects, life insurance coverage should certainly be included at the top of the list. This is because, without this important tool, loved ones could be left with difficult financial hardships when it comes to debts or ongoing income.
For some people, applying and getting approved for the type and amount of life insurance protection that they need is simple. But for others, the process can be quite difficult. This is because when you have certain types of health conditions, the life insurance carrier may see you as a risk – and when this occurs, coverage may be approved at higher rates, or possibly not even approved at all. This may happen for those who have type 2 diabetes.
If you have type 2 diabetes – even if you have been declined for life insurance in the past -, there is some good news. Today, there are many additional options that are available to you – especially if you know where to turn when applying for life insurance coverage. We can help you through this process of acquiring life insurance for diabetics so that those who are depending on you are not left with debts to pay, and don’t have to drastically change their lifestyles.
What is Type 2 Diabetes and Why Can It Affect Your Application for Life Insurance Coverage?
Type 2 diabetes is a health condition that causes an individual’s body not to use insulin properly. When a person has diabetes, his or her blood glucose levels will often rise to a higher level than normal. This is typically referred to as hyperglycemia.
There are two forms of diabetes – there are type 1 and type 2, with type 2 being the more common of the two types. In fact, more than 90 percent of those who have diabetes have type 2. This form of diabetes is also referred to as “insulin resistance.”
Unfortunately, type 2 diabetes can lead to more serious health conditions, including kidney disease, heart disease, and stroke. This is why it is important to keep this condition under control. Although this is no cure for diabetes at this time, type 2 diabetes can be managed or controlled through certain medications, as well as through proper diet and exercise.
Since type 2 diabetes poses an additional risk, the underwriters will typically want to review more in-depth information of an applicant who has this condition.
What the Life Insurance Underwriters Want To Know If You Have Type 2 Diabetes
When a person who has type 2 diabetes is in search of life insurance, he or she will be required – as are all other applicants – to fully complete an application for coverage. Through this application, the life insurance company will request both personal information, as well as details about the person’s health. Some of the questions that you may be asked on the application for coverage will include:
- Contact Information
- State of Residence
- Smoking Status
- Alcohol Usage
- Hobbies (Particularly any risky hobbies such as skydiving, scuba diving, etc.)
- Frequency of Foreign Travel
- Any Other Life Insurance In-Force (And the amount of coverage)
For those who have health conditions such as type 2 diabetes, the life underwriters will also want to know more information regarding your health condition, as well as how you may be managing and / or controlling your condition. With that in mind, you may, therefore, be asked some or all of the following additional questions:
- When was your initial diagnosis of type 2 diabetes?
- Do you take any prescription medication for your type 2 diabetes?
- If so, what medication do you take, and what is the dosage of that medication?
- Has the amount of that dosage changed?
- How is the medication helping you to manage or control your type 2 diabetes? And how well?
- Are you able to manage or control your type 2 diabetes in any other manner, such as through diet or exercise?
- Most recent blood sugar levels?
- Most recent A1C levels?
- Has any testing been performed pertaining to your type 2 diabetes (last six months)?
- Any hospitalization due to your type 2 diabetes (last 12 months)?
- Do you visit on a regular basis any medical specialist for your type 2 diabetic condition?
Most applicants who apply for life insurance coverage – especially if the face amount of that coverage is above a certain amount – will need to have a life insurance medical exam performed. In this exam they will get a reading or your blood pressure and heart rate. You will also give blood and urine samples, which will, in turn, be tested by the life insurance carrier for certain other health risks. This exam will be at no cost to you and you will have many options for when and where to complete it.
For those who have type 2 diabetes, the insurance underwriters will review the applicant’s records from any primary care doctor or specialist with whom they seek care. Having as much information as possible can help the underwriters in getting a much more thorough picture of the individual’s overall health condition. After all, of the information has been obtained, a determination may be made regarding your life insurance coverage, as well as regarding an appropriate amount of premium.
How Much Does Life Insurance Cost for a Person With Diabetes?
The premium for your life insurance when you have type 2 diabetes will depend on a variety of factors – including the amount and the type of coverage (term or whole life insurance) that you purchase. Age and gender are also primary criteria, as is health and health history.
Due to having type 2 diabetes, the insurance company will factor in your health condition, as well as how well it is being managed and / or controlled, as well as any medications that you are taking, and whether or not you are experiencing any type of complications.
If it is determined that, even though you have type 2 diabetes, your health is otherwise good, then it is possible for you to get a Standard policy rating – and because of that, you could pay Standard policy rates. This means that the premium rate that you pay for your coverage would be in line with that of the average policyholder who is in your same age and gender category.
Should it be deemed that you are not in as good of health as a Standard, or average, policyholder, then, you could still be able to attain coverage. However, it may be in a Substandard policy class. Here, your rates would be higher than that of a Standard policyholder.
If the life insurance company declines your application for coverage, there are still coverage options that are available to you. One way that you can still seek the life insurance protection that you need is via a no medical exam policy. As its name suggests, there is no medical examination that is required with a no medical exam policy – and because of that, many applicants who have health issues may still be able to qualify for the coverage that they need.
It is important to note that because the applicants who obtain no medical exam coverage are usually more risky than those who get medically underwritten coverage, the premiums that are charged for no medical exam coverage are typically quite a bit more per dollar of face value.
It is also important to understand that not all life insurance carriers underwrite their policies in the same manner. This means that even if the same person with the same health criteria applied at two different life insurance companies for the exact same coverage – he or she could obtain vastly different premium quotes.
Therefore, it pays to shop around before making your final decision on coverage – and this can be especially important to those who have health issues such as type 2 diabetes, as it could sometimes mean the difference between getting approved for coverage and possibly being declined.
Can You Help An Application Through the Approval Process?
Before you begin to shop for life insurance coverage, there may be some things that you can do to help yourself in securing the policy that you need. As an example, if you are not already managing your type 2 diabetic condition via an exercise routine and / or with proper diet, this is something that you should initiate as it can help you to look more positive in the insurance underwriter’s eyes. Being more healthy overall can also help you when going through the medical examination that will be required as a part of the underwriting process – as it could help you in obtaining better blood sugar readings, as well as blood pressure readings.
If you go through a company or an agency that works with higher risk life insurance applicants, you may also request that additional information about you be sent in with your application. This could include details about how you are managing your type 2 diabetes condition via exercise, diet, or other mechanisms. Any type of positive information that can be passed along to the underwriters can be helpful for your insurance application.