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Life Insurance for Diabetics
By Kat Tretina MONEY RESEARCH COLLECTIVE
If you are one of the 37.3 million Americans with diabetes, purchasing life insurance can be a challenge. Some life insurance options exclude people with diabetes, and others may charge higher premiums if you have type 1 or type 2 diabetes.
However, there are many life insurance options for people with diabetes. And if your condition is well managed and you’re willing to undergo a medical exam, it’s possible to get affordable coverage.
Table of contents
- Can you get life insurance as a person with diabetes?
- How to get life insurance for diabetics?
- What determines the cost of life insurance for diabetics?
- Affordable life insurance options for diabetics
- Life insurance for diabetics FAQs
- Summary
Can you get life insurance as a person with diabetes?
Diabetes is a relatively common condition. According to the Centers for Disease Control and Prevention (CDC), about one in 10 people in the United States have either type 1 or type 2 diabetes.
Many people with diabetes put off shopping for life insurance because they believe they’re ineligible for coverage or that it will be cost-prohibitive. But because diabetes is so prevalent, life insurance companies are more open to offering policies to those with diabetes than previously.
However, life insurance policies are often more expensive for people with diabetes than those without existing health conditions. And people with diabetes may not be eligible for policies that utilize accelerated or simplified underwriting; instead, you’ll likely need to undergo a physical medical exam to qualify for life insurance.
Types of life insurance for diabetics
If you are shopping for life insurance with diabetes type 1 or type 2, you may be eligible for term life insurance, permanent life insurance or guaranteed issue life insurance.
Term life
Term life insurance is a popular type of policy for people with diabetes since it’s generally the cheapest form of coverage.
With term life coverage, you choose a policy term for how long your coverage lasts — usually between 10 and 30 years. Your beneficiary receives the policy’s death benefit if you die during the term.
It’s less expensive than other policy types since it only provides coverage during a specific period. They’re best for individuals looking for affordable insurance protection for their loved ones without needing other benefits like cash value or investment options. It may be a good option if you have temporary financial obligations and you want coverage during that time — like a mortgage.
Permanent life
If you’re looking for coverage that lasts your lifetime, you need a permanent life insurance policy. There are two main types:
- Whole: Whole life insurance offers life-long coverage and a guaranteed death benefit. It also has the potential to earn cash value over time, and you can access that cash value through loans or withdrawals.
- Universal: Universal life insurance combines life insurance protection with an investment component. This policy offers more flexibility, allowing you to change your premiums, death benefit and other features as your circumstances change.
Because permanent coverage is designed to last for your entire life, it’s usually much more expensive than term life coverage.
Guaranteed issue life insurance for diabetics
When purchasing life insurance, you will find that there are several forms of underwriting. While healthy, younger adults can often qualify for coverage without medical exams, individuals with type 1 or type 2 diabetes may not be eligible.
Most people with diabetes must get medical exams and lab work before getting coverage. But there is a no-medical-exam option that may give you some protection: guaranteed issue policies.
Guaranteed issue policies, also known as final expense policies, are forms of life insurance that don’t require medical exams or health reviews. They are usually for smaller amounts, such as $50,000 or less, and are meant to cover your burial and other final expenses.
They are guaranteed issue, meaning that you cannot be denied based on your medical history or current health. But they’re only for certain age groups; you usually need to be at least 45 to purchase a policy.
Guaranteed issue or final expense policies tend to have much higher rates than other life insurance options, so they are best for those that cannot qualify for other policies.
How to get life insurance for diabetics
Although the process of purchasing life insurance as a person with diabetes can be intimidating, it’s simpler than you may think. Follow these seven steps to get life insurance.
1. Decide how much coverage you need
When purchasing life insurance, you can choose a death benefit amount. Depending on the type of coverage you buy, you can choose a benefit as low as $10,000 or as high as $65 million.
To figure out how much life insurance you need, consider your financial obligations, such as your current debt or mortgage and your current income. If you have dependents, consider how much time they would need to replace your income.
2. Choose the type of coverage you want
Next, think about your goals for your life insurance policy. If you want inexpensive coverage for your loved ones if you pass away, a term life option is likely best.
By contrast, a whole or universal life policy may be a better option if you’re looking for a policy that lasts for your lifetime and can accumulate cash value.
3. Shop around or work with a broker
Rates, options and eligibility requirements vary by insurer, so it’s particularly important for people with diabetes to shop around with many companies. You can comparison shop on your own or work with an insurance agent or broker to help you find the best policy.
You can visit your state’s department of insurance website to find a list of brokers and life insurance companies licensed to operate within your state.
4. Schedule your medical exam
Life insurance for type 1 diabetics or type 2 diabetics will normally require a physical exam and bloodwork. There’s no cost associated with the test — the insurance company covers it — and it will work around your schedule. In most cases, the insurance company will send someone to your home or work for the test, so it’s a minimal inconvenience.
5. Complete an interview
Fully underwritten life insurance policies also require a phone interview to ensure that all of the information on your application is accurate. It usually lasts 10 to 15 minutes. You’ll need the following information:
- Your driver’s license number
- Financial information, including your current salary
- Dates of any surgeries, hospitalizations or treatments
- A list of current medications
- Your current weight
6. Await the company’s decision
After the interview and medical exam, the company will review your information to determine your eligibility for a life insurance policy. This process can take several weeks, so don’t be discouraged if you don’t hear back immediately.
7. Review your policy and pay your premiums
Once the company has approved your life insurance application, the representative will send you the policy documents to review and sign. Carefully review the policy to understand what’s covered and when your premiums are due. When you’re ready, sign the documents and pay your first premium.
There’s usually a waiting period before your policy goes into effect. However, some policies allow for coverage to begin as soon as you pay your premium.
What determines the cost of life insurance for diabetics?
Your life insurance premiums depend on several factors, including:
- Your age: In general, the younger you are, the lower your premiums will be.
- The type of coverage you choose: Term life insurance is usually significantly less expensive than permanent coverage.
- Riders: Riders, also known as endorsements, allow you to purchase additional coverage, such as life insurance for your child or accidental death insurance. Adding optional riders to your policy will increase your premiums.
- Your medical records: The company will review your medical history, including past health issues, prescriptions, surgeries and other treatments. Existing health issues can cause your premiums to increase.
- Your family’s history: If you have family members with heart conditions, cancer or other issues, you may have to pay a higher premium.
- Tobacco use: Individuals that use tobacco products, like cigarettes, will have higher premiums than those that do not.
- Diabetes status: How long you’ve had diabetes and what treatment you’ve received affects your cost.
Type 1 diabetes
Type 1 diabetes is a genetic condition, and lifestyle choices don’t play a role in its development. Because it isn’t something that you can reverse, life insurance for type 1 diabetics is often harder to get, and it’s also more expensive.
If you are struggling to get coverage, one option to consider is a policy with a graded benefit. This approach will give you a reduced death benefit for the first two years of your policy. After that initial two-year period, the full death benefit applies.
Type 2 diabetes
Life insurance for type 2 diabetics is easier to qualify for since the condition can be managed and even reversed with proper diet, exercise and medication directed by your doctor. To reduce your premiums, focus on working with your healthcare professional to improve your glucose levels and overall health.
Affordable life insurance options for diabetics
Premiums vary by insurer, but three companies that may offer good options for people with diabetes are John Hancock, Haven Life and Mutual of Omaha. This isn’t an exhaustive list of all the companies that offer coverage, but it’s a sampling of a few options that may be affordable for you.
| Company | Types of Coverage | Coverage Amounts |
| John Hancock | Term, Whole | $250,000 to $65 million |
| Haven Life | Term | Up to $3 million |
| Mutual of Omaha | Term, Whole/Guaranteed Issue | Term: $100,000 and up Whole: $2,000 to $25,000 |
John Hancock
John Hancock specifically designed a policy for people with diabetes called John Hancock Aspire. It combines life insurance with other benefits, including:
- The Vitality program, which provides discounts on healthy foods and fitness devices
- Virtual consults with diabetes experts
- A customized diabetes support kit
Policyholders can reduce their life insurance premiums by as much as 25% with these program benefits.
John Hancock sells multiple life insurance products, including term and permanent coverage.
Haven Life
Haven Life specializes in term life coverage. While the Haven Simple term policy isn’t available to most diabetics, those with type 1 or type 2 diabetes may qualify for Haven Term coverage by passing a medical exam.
Mutual of Omaha
With Mutual of Omaha, individuals with diabetes can get up to $25,000 in whole life insurance with a guaranteed issue policy. You cannot be denied because of your health, and you can get coverage instantly by paying your premiums online.
Life insurance for diabetics FAQs
Summary of our guide to life insurance for diabetics
If you’ve put off shopping for life insurance because you were worried your diabetes would hurt your chances of getting a policy, don’t be discouraged. You can still find companies willing to work with you; coverage doesn’t have to be prohibitively expensive.
Start by researching options from multiple life insurance providers, and request quotes for premiums based on your coverage needs. If you’re willing to get a physical exam, fully underwritten policies may be cheaper than simplified or accelerated underwriting. You could lower your premiums by bundling your coverage with your other insurance policies.
