Having diabetes does not exclude you from buying a life insurance policy. The only thing is that your diabetes has to be well-maintained and the rates will be higher than what non-diabetics will pay for the same policy.
Guaranteed Issue policy for poorly controlled diabetic people
If your diabetes is poorly controlled, then choose the Guaranteed Issue life insurance policy because it does not need a medical exam. However, the death benefits of this policy are low and premiums are costly. Moreover, there is a customary waiting period while buying this policy.
Pros of guaranteed issue life insurance policy [no medical exam]
- The medical history will not impact approval or premium rates.
- The premium is based on age – the earlier you buy a policy the lower the premiums.
- Policies are whole life insurance plans that cover a person’s entire life.
Cons of guaranteed issue life insurance policy [no medical exam]
- Premiums are higher than regular life insurance policies.
- The benefits are lower than regular life insurance policies.
- Maximum death benefits are lower.
- If you expire before the end of the waiting period then the premiums are returned, but death benefits are not paid.
Mostly every life insurance policy is based on your health, but a guaranteed issue policy is the one option diabetics can choose.
How does Type I diabetes affects your life insurance premiums?
Type I, is a condition, where the sufferer is unable to create insulin naturally and has to depend on insulin injections. It is a severe kind of diabetic condition. It is generally diagnosed in children and teenagers. As the term of having diabetes is long the percentage of risk also increases. Therefore insurance providers are less likely to approve the applicant’s life insurance policy. Even if they approve the rates will be high. Finding affordable coverage for people with type I diabetes is hard.
How does Type II diabetes affect your life insurance premiums?
Type II is a common kind of diabetes. It is diagnosed generally in adulthood and is mild. A person with well-controlled diabetes can get approved for a life insurance policy at lower rates than what would be for a patient with type I diabetes. Nevertheless, the person with type I diabetes will have to pay more than a non-diabetic person of the same age.
Diabetes management tips for enhancing life insurance rates
Insurance provider determines the life insurance premiums on the risk amount you pose for them. If your condition indicates that you will die prematurely then the premiums will be higher than the person expected to survive a normal lifespan. Some insurance providers may reject your application.
If diabetes is controlled well with medication or lifestyle changes then the premiums may be less than the person with poorly managed blood sugar level. Managing diabetes makes a difference between approval and denial of the life insurance policy. Also, examinations may not be required. There are several non-medical exam life insurance for diabetics to choose from.
Diabetic people must buy life insurance coverage as soon as they can. The premiums are based on existing health conditions. If you delay and your health worsens then you may not get approved or will have to pay huge premiums. Group life insurance is also another option for diabetes that is bought through your employer. The benefits are low but help in financial planning.