you are reading this article, then you
are fully aware of the effects that
being diabetic can have on all facets of
your life. Finding life insurance
for our clients with diabetes is an
increasingly common request. At
any given time, we have someone in
underwriting who is diabetic so we're
familiar with navigating the
insurance market in such a situation.
Let's take a look at the life insurance
market has it pertains to diabetics.
first consideration as with all life
insurance shoppers is whether
whole life works better. The
simple answer is that whole life
insurance, when rated up, for diabetes
will just be too expensive or not
provide enough protection. This is
true even for people in the best of
health but the effect is magnified since
we will likely be "rated up" which life
insurance parlance for incurring a rate
increase. Just how much can we
try to keep the industry jargon to a
minimum or better yet, explain what you
can expect in layman's terms.
First, a quick lay of the rates
you run a quote, you are typically shown
the best rates. This usually goes
under the heading of Preferred so some
version of that. Each
carrier is slightly different but
there's usually about 3-4 levels below
this. These levels are slightly
higher in cost and are determined by
various health issues or histories.
It's very difficult if not impossible to
get these Preferred rating tiers if we
have diabetes. So what
can we expect?
Type 1 Diabetes, a Table rating is
mandatory. This is the rating
below the top tiers mentioned above.
Keep in mind that this is usually the
best case. This assumes we're in
good health on other fronts.
Type 2 diabetes with good control is
standard pricing (effectively tier 2/3
pricing under term life- non preferred).
Type 2 diabetes with tobacco use drops
you down to table rating again
Type 2 diabetes with proteinuria is
typically an auto-decline.
does all this mean in terms of real
money? Let's say we start at
Preferred Plus. The increase in
cost to Preferred might be 25%. A
further drop from Preferred to Standard
Plus might increase the cost another
30%. The increase from Standard
Plus to Standard might increase the cost
another 10%. And finally, the drop
from Standard to Table Rate 1-A would
result in a further increase of about
20%. Keep in mind these are not
quick take on the math means that you
can expect to pay about double with Type
1 Diabetes (assuming good health).
Type 2 with good control is probably 80%
higher than the best rate you'll find
quoted. Type 2 with tobacco or
other corresponding health issues will
likely double your rate again.
When you run your
term life quote, keep this in
there certain carriers that make sense
for people with health issues including
diabetes? Also, do certain
type of plans (such as non-medical exam
or hybrid plans) make sense? Based
on our experience, one good approach
might be the Hybrid term life insurance
plans. These plans allow you to
qualify fairly quickly for Accidental
and Death life insurance coverage and
then expand this out with a
exam during a certain period of time.
We also have some carriers that might be
more flexible in case of diabetes.
Ultimately, this is the kind of
situation where a generic life insurance
quote will not suffice. You will
need to experience and subtlety of a
life insurance agent to help you find
the best fit and more importantly, avoid
the frustration and lost time of
applying for life insurance plans that
will ultimately not work out. Keep
in mind that the quote given at any
website (including ours) is just a
actual final offer is what really
matters and we can help you find the
best offer. Contact us with your
particular situation so we can help you
navigate the market.